By Kuldip K. Ambastha
The stock of Dollar Tree, Inc. (DLTR), a prominent discount variety store chain operator in North America, had an impressive gain of +16.5% for the trading day of Wednesday, September 29, 2021. As dollar store chains have faced rising inflationary, raw material cost, freight shipping cost, and labor cost pressures, store offerings have increasingly been priced at more than $1 at many Dollar Tree competitors. Dollar Tree had been one of the most prominent dollar store chains to adhere to the $1 price point consistently over many years, but that has now changed. $1.25, $1.50, and other higher price point items will be offered in some Dollar Tree stores soon. Investors were intrigued by this news, hoping that the lifting of a $1 pricing restraint will yield much stronger sales growth for Dollar Tree going forward. If its customers stay loyal to and continue to see value in Dollar Tree offerings, sales figures will be much more impressive going forward and Dollar Tree’s tough, bold decision here will pay off over the long-term.
Keywords – Dollar Tree, Inc., Dollar Tree, DLTR, dollar store, $1, $1.00, $1.25, $1.50, North America, pricing, costs, benefits, revenues, sales.
Disclosure – The principals and clients of Ambastha Financial LLC have no positions in DLTR.
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