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A few weeks ago Dollar Tree decided to put an end to prices of $1 dollar and increase the price of most items in stores to $1.25 dollars, which has provoked a protest from a large number of its most loyal customers through different social media platforms, as reported by CNN.
In November the dollar store company made the announcement and said that the reason for raising its prices was due to the increase in cost of products and transportation.
Hundreds of consumers uploaded videos and post protesting the increase in products after the chain has offered them at $1 for more than 35 years.
Now the prices of the products have changed the legend that characterized them from “everything for a dollar” for small signs that say $1.25 dollars, for what some of the faithful followers of the chain have suggested that the name of the stores should be “1.20”.
So far the impact on sales is unknown and will be known until The company presents its quarterly results.
For now, an online survey conducted at 500 people by Coresight Research, a retail trade research firm, revealed a 6.2% decline between the 27 December and January 3 in the number of customers who said they purchased items at Dollar Tree stores compared to the previous two weeks.
Those who stopped buying more, according to the survey, was the group of consumers between 45 to 60 years.
New prices $1.25 were implemented since December in more than 2,000 branches in the United States. The price increase will allow the company to face the high increases in the costs of merchandise, logistics and even salaries
Although Macon Brock, one of the founders of Dollar Tree stores, wrote in his autobiography that the concept of “just one dollar” was something sacred, the increase in the price of items and the restrictions in the supply chain caused by the coronavirus pandemic generated the change in company policy.
Stores also suspended the sale of some of the packaged and frozen foods due to the increase in prices.
Advantage of selling everything for $1 dollar
Selling everything for $1 was also easy for branch workers as they didn’t have to constantly change prices in the aisles or labels on the shelves.
Also customers on tight budgets found it easy to keep track of items as they shopped.
The chain has more than 8, branches throughout the country and now sells its items at prices ranging from $1.000 and $1 .50 Dollars.
Some specialists have estimated that the change in the pricing policy will cause the customers will now prefer to shop at other stores like Dollar General where near the 20 Percent of their products are still sold at prices of $1.
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