If your local dollar tree was slow to change its $ 1 value announced last fall to a new base price of 25 1.25, now it has. The retailer has announced that all stores have now changed ahead of schedule. And “customers are excited” about it.
Well, not necessarily excited about paying more for the same thing. But excited about the new and returning product that will allow the new price point dollar tree to offer.
“I’m very excited about the stockpile that you’re going to see flowing there, and our customers are excited,” Dollar Tree CEO Mike Witinski told investors yesterday. Soon, store shelves will be stocked with “some of the most exciting items we have and our customers are going wild about it.”
A lot of excitement about shopping in the dollar store!
After decades of clinging to its “everything a dollar” price structure, long after other dollar store chains abandoned it, the dollar tree began testing high prices last year and announced in November that it would raise its base price to $ 1.25 nationwide. . As inflation rises, “the company believes that this is the right time to move beyond the $ 1.00 price point limit to continue offering extreme pricing to customers,” the dollar tree explained at the time.
The rollout was due to end in May. Instead, it was completed last week, as more than 7,800 Dollar Tree stores now have new prices.
And how does the customer respond? They are, well, “overwhelmed!”
“We’re very excited about it,” Witinsky said, adding that the goal of the dollar tree is to “really excite customers by seeing the innovation in our stores.” Meanwhile, he says, stores have added soda and snacks that they haven’t carried before because they couldn’t afford to sell for just a dollar. Over the next few months, stores will revolve around additional new items that were not previously available. “We’re focused on exceeding buyers’ expectations for the 1.25 price, just as we’ve been at the $ 1 price point for over 30 years,” Witinsky said.
In the meantime, buyers aren’t necessarily “overwhelmed” about the $ 1.25 payment for the same items they receive for a dollar. The dollar tree posted disappointing sales figures this past quarter. But retailers expect the numbers to improve as older products that used to sell in dollars, and new products now sell for 1.25.
Dollar Tree expects business to thrive by offering more $ 3 and $ 5 products The retailer launched “Dollar Tree Plus” sections in select stores several years ago, offering a selection of high-end, high-value products. These items are now available in more than 600 stores, and Dollar Tree plans to introduce them to 1,500 more stores next year, with a final target of about 5,000 stores.
When asked if the retailer was concerned that buyers would be excluded at higher prices, Witinsky acknowledged that “of course, we are afraid of our customer thinking process.” But he said their research showed that buyers “believe in the dollar tree and the dollar tree is the most recognized and trusted brand in the dollar segment of value. Duration. This is after the পরিবর্ত 1.25 price change.” Eighty-five percent of consumers say they haven’t stopped because of the high prices and will continue to shop at Dollar Tree.
Of course, this means that 15% of buyers do not like the new price. And Whitinsky did not directly answer an analyst’s question that extending the high price point would “open the door for নিচে 1.25 to $ 1.50” down the road.
But now that the dollar tree has “broken the deer” after almost 35 years, anything is possible. For now, most consumers who are accustomed to seeing higher prices at the point of purchase don’t mind the new lar 1.25 price of the Dollar Tree. As the financial pressure mounts, time will tell whether their “excitement” over the dollar tree’s new pricing strategy will last.
Photo source: Dollar Tree