Real Dollar Stores: Are Some Stores Still Charging $ 1 or Less?
The dollar store in America is a dying breed – and yet it is more successful than ever.
How could it be? For one thing, the dollar store is arguably the hottest category in the retail world. Dollar stores are on track to account for 40% of new stores opened this year in the United States. And the three major dollar store chains – Dollar General, Family Dollar and Dollar Tree – already operate nearly 33,000 stores in North America, many more Walmart, CVS, Target, Rite Aid and Costco combined.
At the same time, however, the term “dollar store” has less and less meaning. For years, most dollar stores have featured products that cost over $ 1. This week, Dollar Tree, the only large reserve that has priced the vast majority of items at $ 1 or less, announcement this greatly increases the number of products that are priced above $ 1.
In addition to its 6,000 iconic Dollar Tree stores, the company operates more than 100 locations operating under the Dollar Tree Plus brand. These stores often have merchandise priced at $ 1, $ 3, or $ 5, and Dollar Tree predicts that 500 of them will be open by the end of 2021. Dollar Tree also breaks the tradition of $ 1 or less. by testing more items priced at $ 1.25 or less. $ 1.50 at regular Dollar Tree stores.
“We believe that testing additional prices above $ 1 for the Dollar Tree product will allow us over time to expand our assortments, introduce new products and meet more of our customers’ daily needs,” Michael Witynski, President and CEO of Dollar Tree, said in a press release. Release.
Bargain buyers may be disappointed by the move, but investors certainly seemed to like Dollar Tree’s move. The company’s stock price jumped 16% after Wednesday’s announcement, before falling more than 4% on Thursday.
Meanwhile, Family Dollar – which was bought by Dollar Tree in 2014 – has been selling items over $ 1 for years. The same goes for Dollar Tree’s main rival, Dollar General, who in this week’s flyer is promoting products like Android cellphones, Tide laundry detergent, and Gorilla Glue for more. $ 1.
It’s understandable that dollar stores charge more than $ 1. They want to provide one-stop shopping for customers, and it is not possible to price items like electronics, fresh produce, and branded household products for just a dollar. When you add in high inflation and issues with the global supply chain in 2021, it would seem nearly impossible to run a profitable business that only charges $ 1 for a decent selection of products.
True Dollar Stores: Are Some Stores Still Charging $ 1 or Less?
Dollar Tree’s dollar disavowal highlights one question: Are there still real dollar stores in America?
Here is an overview of the situation of large national chains, as well as some small regional players. (We focus on stores with multiple locations. There may also be smaller independent dollar stores, as well as online-only retailers that sell everything for $ 1.)
99-cent stores only
There are nearly 400 99 Cents Only stores in the United States, and all of them are located in California, Arizona, New Mexico, and Texas.
Are all products sold really priced at $ 0.99? No. The company has instituted a price change in 2008, which added 99/100 of a cent to its prices – in fact, raising almost everything to a fixed amount of $ 1 each. Later, stores began charging prices over $ 1 for butter, eggs, and some other groceries, as well as seasonal merchandise.
Dollar General has the most locations of any dollar chain store – or any store period – in the United States. It has more than 17,000 locations in 46 states and plans to add more than 1,000 this year. And a lot of things sold in stores cost over $ 1.
Dollar Tree (the Company) operates a total of more than 15,000 stores in the United States and Canada. Approximately 8,000 locations are Family Dollar stores and 7,000 are operated under the Dollar Tree name. Until recently, almost all products sold in traditional Dollar Tree stores were $ 1 or less. But with the changes announced this week, more and more goods will cost over $ 1.
Like Dollar General, Family Dollar is essentially a low-cost, versatile retailer, offering a range of household items, seasonal decorations, clothing, and basic groceries. And yes, many items cost over $ 1. A recent weekly ad featured pajama sets for $ 7 to $ 12, storage containers for $ 7 to $ 16, bath towels for $ 5 each, and comforters for $ 35.
As the name suggests, Five Below’s prices are always $ 5 or less. So it’s not really a dollar store, nor does it claim to be. So it’s no surprise that many prices exceed $ 1 at Five Below, which was founded in 2002 and has more than 1,000 stores in 39 states.
This regional distribution chain, with 15 pitches in North Carolina and Kentucky, features the usual scavenger hunt for dollar store closures: greeting cards, baby accessories, seasonal decorations, snacks, toys, party supplies, kitchen supplies and more. Unlike other “dollar” stores, Mighty Dollar claims that absolutely everything they sell really only costs $ 1.
More money :
Over 40% of new stores opened in the United States are dollar stores
Why you should start your 2021 holiday shopping now (no we’re not kidding)
6 best home insurance companies