I remember the first time I visited Dollar Tree, I was stunned. What do you mean, I can buy something here for a dollar? As a teenager I visited the store to pick up things and when the holidays came up, I charged all kinds of things for the whole family to enjoy. The days of the $ 1 product promise may be over before we know it.
Unlike dollar chain stores such as Family Dollar and Dollar General, each item in Dollar Tree Stores is only $ 1. Unfortunately, according to the Chesapeake, Va.-based retailer, it is forced to try higher prices because of the newest rate of Trump on Chinese goods. Currently, the price increase is taking place in $ 100 tree nurseries across the country, causing some products to rise to $ 5 in their Dollar Tree Plus! collection.
According to Business Insider, Dollar Tree produces around 40% of its product in China, which means that large quantities of products can be sold at a very cheap price. “The rates are more difficult for Dollar Tree than for competitors, because the company has a one-dimensional business model that cannot be easily changed or adjusted,” said Neil Saunders, managing director of GlobalData Retail, Business Insider in an email. Dollar Tree’s business model is aimed at keeping the products at the same price, but with additional costs it is difficult to find where the company can continue to make a profit. Companies such as Walmart or Target have the option to hide these costs in their prices, but Dollar Tree cannot.
The Washington Post says, “American families will pay nearly $ 800 more per year for everyday items, including cribs and toilet paper, as a result of the Trump administration rates for Chinese imports, according to a report from the Trade Partnership, one in Washington established company. research and consultancy. “And it shows. The company also lowered earnings expectations for the year due to a $ 15 million increase in import freight costs.