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Dollar Tree Fanatics Protest New $1.25 Price – CBS Miami

MIAMI (CNN) – “I’m Not Happy!”

“DO NOT sit right with me.”

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“Disaster.”

“My stomach hurts.”

Dollar Tree’s recent decision to end the $1 price point after 35 years and increase most items in stores to $1.25 prompted an angry reaction from many loyal customers across the globe. Twitter, Facebook, TikTok and YouTube.

Video bloggers with hundreds of thousands of followers have posted videos of their reactions to the price increase – or walked into a store for the first time and saw the ubiquitous Dollar Tree yellow and green circles.” Everything is $1” replaced with $1.25 signs.

Some shoppers have started mockingly calling the chain the “$1.25 Tree” and saying it should change its name.

The criticism highlights the risks that Dollar Tree — the last major dollar store chain that actually sells nearly everything for a dollar — has taken in abandoning its $1 brand identity.

“I wish they wouldn’t do it because most of their shoppers are people who don’t get paid a lot,” said Leniza Costa, a Pawtucket, Rhode Island-based beauty influencer who is “famous always go” to the Dollar Tree.

Costa won’t shop at Dollar Tree as often and will instead shop for $1 worth of items at Walmart.

“This is the worst time to be bullish, when everything else is too much,” she said.

We won’t know for sure if customers will turn away from Dollar Tree’s new pricing until it reports quarterly results in the coming weeks. But there are signs the move could alienate some shoppers.

A weekly online survey of about 500 consumers by Coresight Research, a retail research and consulting firm, found a decrease in the number of customers who said they purchased non-food items at Dollar Tree. 6.2% compared to two weeks ago. A sharper drop of 12.2% was seen among shoppers between the ages of 45 and 60. Other chains, including Walmart and Dollar General, did not see similar declines in surveys.

Dollar Tree added a $1.25 price tag to more than 2,000 stores in December (it has about 8,700 stores in the US), and Coresight said in a report that “the drop in shopper numbers appears to be falling.” at the same time as its price increases”. The company warned against “over-trusting one week’s data point,” but said the latest figures “may reflect buyer migration following” price changes.

A spokesperson for Dollar Tree said: “We have received very positive feedback from the majority of customers around the $1.25 price point and extreme value and wider product selection that it offers. allowed, especially in this time of inflation,” a Dollar Tree spokesperson said in an email. “We look forward to providing more details on this initiative during our next earnings call.”

‘Our niche’

The $1 price tag is nearly impregnable for Dollar Tree, which sells toys, home furnishings, kitchenware, holiday decorations, stationery, party supplies, arts and crafts tools, books, food, necessary household items and other items.

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Macon Brock, the founder of Dollar Tree, said in his 2017 autobiography that “I consider the concept of just the dollar to be sacred. That’s everything. Without it, we would just be another discount retailer.”

“I believe let go of the dollar and we will give up our niche,” he wrote.

Just as recently in August, Dollar Tree chief executive Michael Witynski said the company had committed to raising $1. “This dollar price level is going to be more important than ever,” he said on an analyst call.

Selling anything for $1 is also easy in a Dollar Tree store operation. Workers don’t have to constantly spend time changing aisle displays or shelf tags, and it’s also simple to track the purchases of customers on a tight budget.

Dollar Tree is bullish because their business is under pressure to keep everything under $1. Labor, transportation, fuel, freight and transportation costs have risen, reducing the company’s profits.

Some commodities are also affected by the $1 strategy. The company said in November that the chain had to discontinue some of its “customer favorites,” especially for packaged and frozen foods. According to the company, the price increase will give Dollar Tree the flexibility to re-introduce those items, expand the selection, and bring in new products to attract customers.

Dollar Tree has started selling items for $1.25 and $1.50 in select stores and says it has received positive customer feedback about the test, which has resulted in the release of the product. The company announced in November that it would move to $1.25 at all of its stores.

On December 12, in the wake of an activist investor pushing for bigger changes at the company, including the nomination of a brand new board of directors, Dollar Tree’s board said the price hike has been successful so far.

The store’s $1.25 performance “further validates our earlier experiments and demonstrates the success of the Company’s strategy and execution,” the board said. in a statement. The board of directors said the move to $1.25 “was not a decision the Company took lightly and required careful planning, including ensuring that it continued to offer an assortment of goods.” meaningful with extreme value” for shoppers.

But some retail analysts say the decision is hasty, jeopardizes the brand’s image and will turn shoppers to competitors like Dollar General, which sells around 20%. ​your product for $1.

The price change has upset Scent Maven, a video blogger who has posted about her purchases at Dollar Tree and other stores, and will lead her to the store. there less often. (She did speak on the condition that her name be kept private in the story to protect her identity.)

“We all, in the Dollar Tree community, hope that doesn’t happen,” she said, adding that $1 is a price “you can count on.”

“There’s no math in your head or anything like that,” she said. “You know you can go to the Dollar Tree with 10 dollars and walk out with 10 items.”

Although Dollar Tree has hung new signs at stores saying they will offer new items and “more thrills” at $1.25, she hasn’t seen a change.

“It’s like they’re promising you something more for 25 cents. But it’s not. They all have the same quality and product range.”

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(© 2022 CBS Broadcasting Inc. All Rights Reserved. Cable News Network, Inc., a Time Warner Company, contributed to this report.)

https://miami.cbslocal.com/2022/01/16/sick-to-my-stomach-dollar-tree-fanatics-protest-new-1-25-prices/ Dollar Tree Fanatics Protest New $1.25 Price – CBS Miami

Huynh Nguyen

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