The Dollar Tree chain is getting back to its core and is once again offering its products for $1.00. By doing this, you reduce the cost of items that previously sold for $1.25. Two years ago, the always affordable market decided to increase its prices by 25 cents for each item. Now the managers decided to lower prices in order to sell more and increase profits. However, the Dollar Tree chain assured that it will keep some products priced at $3, $4 and $5.
Dollar Tree CEO Rick Dreiling highlighted the issue. “It’s pretty difficult to have a sign like Dollar Tree and offer an item that everyone else has for $1.00 and you’re offering it for a dollar and a half.”
Great variety of prices at Dollar Tree
In addition to the current decision, Dollar Tree is currently offering a wide variety of prices, which is very similar to what other retailers offer. It no longer works like it did years ago when each product only sold for $1.00. In essence, the chain of stores has gradually lost the main goal for which it was created: to sell every item at exactly that minimum price.
The executive said that the products, which previously cost $1.25, $1.30 or $1.35, would reduce their value to just $1.00. “We want to have limited and fixed prices. We won’t have every price there is. “We will continue to be the Dollar Tree that customers love.”
In the absence of official information, it is estimated that between 300 and 400 products will reduce their cost to $1.00. Currently, Dollar Tree provides more than eight thousand items to its customers. By calculation, about 5% of your inventory costs just $1.00.