Customers of the national chain Dollar Tree may be paying more than $1 moving forward for their needs. Per a report from the Associated Press, the Chesapeake, Virginia, company says it will be offering items for more than $1 at certain locations. Inflation is reportedly the reason. The cost of clothes, cars, food and other goods has increased as a result of the coronavirus pandemic.
Last month, Dollar Tree executives announced that shipping costs have increased and would impact the typical pricing of their items. The company also says that its customers have been yearning for more.
"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," CEO Michael Witynski said in an official statement.
According to the report, inflation in the U.S. reached 4.2% in July 2021, the highest its been in 30 years. Fed Chair Jerome Powell spoke before Congress and explained that price increases had made supply chains and rising labor costs worse. Many businesses have been impacted, but many did not expect Dollar Tree to make adjustments, but it has. Witynski said that Dollar Tree is entering a "test-and-learn" company, enacting changes in real-time. They will be monitoring how consumers react.
Dollar Tree has already begun implementing the changes in some of its 8,000 locations and has created a system called "Dollar Tree Plus," which will sell items for as much as $5. J.P. Morgan analysts notes they have had past conversations with Dollar Tree company executives who cite a significant sales increase at stores that offer a Plus section. Shares within the company have jumped 13% since the changes have been implemented.