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| Dollar Tree is expected to raise its prices. |
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It was bound to happen. The Chesapeake, Virginia based company is going to raise prices on some items at their stores. "Where Everything is a $1" is no longer the motto for Dollar Tree.
The company will be forced to raise prices on food, school supplies, cleaning supplies, toilet paper and helium for balloons.
The cost of clothes, cars, food and just about everything else has soared this year as the global economy emerges from the pandemic.
Last month Dollar Tree said that rising shipping costs would take a bit of the $1.50 to $1.60 out of its per-share profits this year. That's a huge hit for any business, perhaps more so far one founded decades ago steadfastly calling itself "Only $1.00 Inc."
The AP also reported that the company will have some flexibility and likely more variety on its shelves. But a dollar this year will not buy you what it did in 2020.
"For decades, our customers have enjoyed the 'thrill-of-the-hunt' for value at one dollar - and we remain committed to that core proposition - but many are telling us that they also want a broader product assortment when they come to shop," said CEO Michael Witynski in a prepared statement.
Some locations have become Dollar Tree Plus.
Inflation in the U.S. reached 4.2% in July, the highest in three decades. And this week in an appearance before Congress, Fed Chair Jerome Powell said that price increases have worsened amid snarled supply chains and rising labor costs.
Republicans continue to believe that Americans should get back to work in the middle of a deadly pandemic. Over 720,000 Americans have died from the coronavirus. The need for workers is dire for companies like Dollar Tree. They don't pay them enough for a shopper to berate them over a bar of soap costing $1.25 instead of its promised $1.
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