The Dollar Tree chain of stores, which as its name suggests sells products for one dollar, announced that starting in the first quarter of 2022 the price will increase by 25 cents for most of its products in order to adapt to rising inflation. in United States.
In a statement, Michael Witynski, president and CEO of the company, made the announcement when reporting the results of the third quarter of fiscal year 2021, which indicate that consolidated net sales reached US $ 6.42 billion, 3.9% more than in the same quarter of the previous year.
Gross profit was US $ 1.76 billion in the quarter, which is equivalent to 27.5% of consolidated net sales, a lower margin than in the third quarter of 2020 (31.2%), which the company attributed to higher costs freight.
According to Witynski, the surveys carried out before making the decision to raise prices by 25% in 2022 indicate “wide acceptance by consumers ”.
Before making this decision, Dollar Tree had to stop offering some of the products “favorites”From his clients, since it was no longer profitable to sell them for one dollar.
With the announced price increase, you will be able to include them again in your offer and expand it to new products and sizes, says a corporate statement.
According to economic media, Dollar Tree is the last of the large chain stores with dollar products in the United States that decides to raise its prices.
According to CNN en Español, the change is a sign of the pressures low-cost retailers face to maintain prices during a period of rising inflation.
The company, one of the last “dollar stores“(The dollar stores) real that remain in America, sells primarily seasonal products, toys, stationery, home decor, kitchen utensils and party supplies.
Year-on-year inflation in the United States, which closed 2020 at 1.4%, stood at 6.2% in October, a level not seen in 30 years.
The Federal Reserve (Fed) estimates that inflation in the country will moderate in mid-2022.
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