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Will shoppers accept Dollar Tree's price hikes?

Discount store ending its $1-only pricing system
Dollar Tree Breaking the $1 Barrier
Posted at 10:50 AM, Oct 05, 2021

CINCINNATI — Dollar Tree, one of the last true dollar stores selling items for $1, is about to succumb to inflation and soaring shipping costs.

Some shoppers we spoke with are not happy about the change, especially retirees and others on fixed incomes.

Willa Davenport of Cincinnati's Oakley neighborhood has been shopping at Dollar Tree for years because she watches every dime she spends.

We found her picking up paper towels and birthday cards at the store on Alamo Drive, each priced at exactly one dollar.

But she had heard about upcoming price hikes and is concerned.

"I don't think it is right for them to raise the price," Davenport said. "The reason is they are Dollar Tree is that you go in there to get things for a dollar. Are they gonna change all their signs?"

They won't be changing all the signage in the store, but they will be raising prices on some of them, the company says.

At a time when drugstore greeting cards can cost $6, here you can still find Hallmark cards for just $1.

The same goes for wrapping paper and gift bags, food, home decor, even Halloween and Christmas decorations, at just a buck each.

What Dollar Tree is planning

The good news is that not everything is getting more expensive.

Dollar Tree plans to raise prices on some items to $1.25 to $1.50, though it is not specifying which prices are heading up.

It will also convert parts of many stores to Dollar Tree Plus formats with prices as high as $3 to $5, similar to what you would find in a Family Dollar store.

This really shouldn't come as a surprise if you have been to the grocery store, hardware store or a clothing store lately.

Prices are up everywhere this year, with inflation running at 4% annually because of higher raw material and shipping costs.

Shopper Claudia Bligh says her favorite Dollar Tree items will still be a decent value at $1.50.

"I am surprised that hasn't happened sooner," she said. "You get a great buy there, and I think people will still be OK with it."

But fellow shopper Shannon Carrs had hoped it could hold out.

"We want to see a dollar," she said. "Because it's a dollar. Not a dollar-fifty. One dollar."

Dollar Tree, however, has been selling items for just $1 for more than 25 years.

How they have been able to keep doing that during this inflationary year is a mystery.

As always, don't waste your money.


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