Dollar Tree changed everything behind how far $1 could go and to this day, I am avid dollar store shopper because I cannot even tell you how many amazing things you can find for $1!
I guess I should say “could find” because ‘Dollar Tree’ No Longer Just Costs a Dollar and people don’t seem to be happy about the change!
‘Dollar Tree’ Will No Longer Just Cost a Dollar
Last year Dollar Tree decided to comply with angry investors and test out select stores with offering products that cost more than a dollar. These test stores were referred to as ‘Dollar Tree Plus’.
The company aimed to see at these test stores how its economically sensitive customers responded to the higher price point items.
The word is, Dollar Tree bought out Family Dollar so they could combine the two brands and two pricing structures.
Basically, it was to be sort of like a $5 Below where items were more than a dollar and offered more name brand items.
Apparently, it went well because investors were so satisfied with the results, the company is now moving from test phase to a wider rollout at 100 stores.
Named “Dollar Tree Plus!”, the initiative will feature products across many categories that are priced above $1. Dollar Tree management was quick to point out in its Thursday earnings release it was not raising prices on its assortment. Instead, “Dollar Tree Plus!” would be additive to the sales floor.
“With its ‘Everything’s a Dollar’ model, Dollar Tree has remained one of the most unique, differentiated and defensible brand concepts in all of value retail. However, we have always been a ‘test-and-learn’ organization that is committed to evaluating all opportunities to deliver great value for our customers while driving long-term value creation. During this test, we look forward to measuring and assessing the initial results and understanding if the introduction of multiple price points across a broader set of stores is in the best interests of our customers, Company and shareholders,”Dollar Tree CEO Gary Philbin said in a statement.
But how are people really feeling about this?
I looked at Twitter and people are confused. After all, it is Dollar Tree and even a name change can’t fool anyone.
And the most confusing part is that even the Dollar Tree “about us” page talks about being only $1 and how they hear the following reactions all the time:
“I can’t believe this cool item I just found at Dollar Tree!” AND…
“I can’t believe it’s only $1.00!”
Stores still have signs up that say “Everything’s $1.00” so could this be means for false advertising? I don’t see this going well for people that may not notice the small banner placed near the front of the store…
Nonetheless, you might be able to score some awesome deals on name brand items for your home that are still greatly priced.
It’ll be interesting to see how this goes as more and more stores move to this pricing model.
Photos courtesy of Deposit Photos.