Dollar Tree is the latest retailer to change its business practices in response to what’s becoming known as the “Biden Inflation Crisis”. The popular store, which until now only sold $1 items, will raise prices on products as part of a “multi-price evolution” in over 15,000 stores across the U.S. and Canada.
In a Sept. 28 release, the company attempted to put a positive spin on the news by saying it would now offer Dollar Tree Plus and Combo store formats, which will include the higher-priced items.
“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,” the company’s chief executive, Michael Witynski, said in a statement.
READ: Inflation hits Tyson Foods and consumers lose
While the company’s press release made no mention of inflation, Witynski told The Wall Street Journal in an interview that higher costs— including materials, wages, shipping—were also a factor.
With the announcement, Dollar Tree has become the latest retailer to look at passing on at least some of the rising costs to customers.
Costco’s chief executive, W. Craig Jelinek recently estimated the average price inflation of the goods the retailer is selling to fall in the 3.5–4.5 percent range, though the high cost of plastics and resins led some items—like trash bags and plastic cups—to go up by as much as 11 percent.
Jelinek did want to discuss how the company was reducing the quantities in its products in what observers say is a bait-and-switch.
Surging prices have mostly been hidden by companies like Costco, Aldi, and Walmart, who have substantial influence with food producers, sell food or other items in smaller quantities. But a 7.5 oz. bag of chips that are reduced to just 6 ounces often can’t hide the increase. Costco recently reduced the amount of toilet tissue in its hefty value pack but not before customers noticed and complained on social media. At grocers, everything from katsup and peanut butter, to the number of slices in a loaf of bread are being reduced. The reductions often mean the per oz. cost is really going up 20% or more.
And it’s going to get worse.
Economists say the spending plans being put forth by Democrats will continue to cause prices to rise for consumers as companies pass on higher taxes.
The projected $29 trillion in debt, even before the $7.5 in new total spending sought by Democrats, will likely cause interest rates to rise for business expansion. It will also rise for consumers seeking auto loans, home mortgages or refinancing
–Wire services and Metro Voice
