Dollar Tree Raising Prices

Alpha8472
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Re: Dollar Tree Raising Prices

Post by Alpha8472 »

Dollar Tree is no longer a good value on so many items. Many people have already switched to Costco or even Walmart for better deals.

I have seen drastic decreases in customers at the local Dollar Tree. There used to be long lines. Now there are times when there are no customers at the checkout lanes. The few customers that I see, are buying even less. Many do not even need shopping baskets now.

Unless Dollar Tree does something different and fast, the customers will never be coming back.
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Re: Dollar Tree Raising Prices

Post by storewanderer »

Alpha8472 wrote: April 24th, 2022, 9:29 pm Dollar Tree is no longer a good value on so many items. Many people have already switched to Costco or even Walmart for better deals.

I have seen drastic decreases in customers at the local Dollar Tree. There used to be long lines. Now there are times when there are no customers at the checkout lanes. The few customers that I see, are buying even less. Many do not even need shopping baskets now.

Unless Dollar Tree does something different and fast, the customers will never be coming back.
My view is Dollar Tree has lost significant traffic in some locations, the amount of items customers are purchasing has decreased but foot traffic has remained in others, and then there are certain locations (ironically the busiest ones before) that seem to be just as busy and moving just as many units as before.

From what I am hearing of people who work at Dollar Tree, traffic is down, but for many stores, sales are up and the number of units sold has not fallen very much. There are some stores that actually have an increase in sales and an increase in the number of units being sold.

One thing I have noticed is housekeeping in the stores has improved. The shelves are stocked better and variety appears better than before since the shelves are stocked. I think with fewer customers/smaller transactions they have more time to actually stock the shelves.

I still think the price increase move was suicidal but all of these big corporations are making price increases.
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Re: Dollar Tree Raising Prices

Post by HCal »

I've also noticed a drop in traffic at Dollar Tree. I think that psychologically, a sudden 25% jump is too much for people. Other retailers raised prices a few percent at a time, perhaps several times over the course of several months, so it was more digestible, even if the total increase was the same or more. Also, with the $1.25 universal price point, they have less flexibility with loss leaders to get people in the door.

Right now, Dollar Tree isn't a good value on a lot of items, but their margins are likely higher so I think they will do fine with lower sales. And if inflation continues the way it's been going, in some time they might be a good value again :lol:
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Re: Dollar Tree Raising Prices

Post by storewanderer »

HCal wrote: April 25th, 2022, 1:48 am I've also noticed a drop in traffic at Dollar Tree. I think that psychologically, a sudden 25% jump is too much for people. Other retailers raised prices a few percent at a time, perhaps several times over the course of several months, so it was more digestible, even if the total increase was the same or more. Also, with the $1.25 universal price point, they have less flexibility with loss leaders to get people in the door.

Right now, Dollar Tree isn't a good value on a lot of items, but their margins are likely higher so I think they will do fine with lower sales. And if inflation continues the way it's been going, in some time they might be a good value again :lol:
They haven't made many mix adjustments in my view. A few better items but not enough to really notice unless you are searching and have a fantastic memory of what was there before. Maybe they have made more changes than I am giving them credit for, but I am not seeing it. They need to better market their "new items" in the store. If $1.25 is an "Extreme Value Everyday" build endcaps of all the new items you now carry and show me the comparable at Wal Mart price and how you are such an "Extreme Value" and why I should "get it before it's gone." Actually their junk is sitting around longer now than ever since the price increase so "get it before it's gone" is a less relevant marketing message now, than it would have been before they price increased.
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Re: Dollar Tree Raising Prices

Post by norcalriteaidclerk »

I must admit that even before their decision to raise prices,I've never really cared for Dollar Tree.Unlike the merchandise sold at 98 Cent Clearance Centers(the local chain that Dollar Tree acquired to enter NorCal),the merchandise has long been of lower quality compared to its local predecessor which procured quality merchandise a closeout prices(roughly a decade ago,the founder of 98 Cent Clearance Centers would establish a short-lived venture called 'Wise Buys 9.98 or Less' which also sold odd items at bargain prices that you'd least expect).

Now,Dollar General(whose Sacramento presence is relatively limited)long ditched the single price point model for true 'affordable quality' with many items sold at $10 or less,while 99 Cent Only Stores as part of transitioning to just 'The 99 Store' has begun stocking higher priced items(identified with 'Great Value!' on the yellow tags that give the price,not to be confused with the WMT house brand of the same name).Even the boutique-style dollar stores like Daiso Japan and Five Below are upgrades.
For your life,Thrifty and Payless have got it.
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