$1 no more: One dollar store is raising prices while customers flock to its competitor

STATEN ISLAND, NY — The dollar store might cost you more than a dollar these days.

For more than three decades, Dollar Tree, a national discount variety chain that sells everything from craft supplies and beauty products to candy, snacks and toys — has maintained its “everything-for-one-dollar” philosophy, managing its kitschy but successful retail concept even through several challenging inflationary periods.

Last year Dollar Tree announced it would be increasing its prices beginning in December.

Since Dollar Tree began increasing its prices to $1.25, the company’s rival Dollar General has seen an increase in shoppers while it sticks to its $1 price for items, CNN Business reported.

Though the names of the two competitors brand “dollar” they are not true dollar stores. Dollar General has not sold everything for $1. Only 20% of the items purchased are $1 or less, the report says.

However, Dollar General recently began making changes with an increasing amount of $1 items, while Dollar Tree increased its prices from $1 items to $1.25 for all products.

CEO of Dollar General Todd Vasos explained to CNN Business that the chain has leaned towards the $1 price now more than ever.

“Dollar General is really pushing that [$1] side of the business because I think our customers will need us even more,” said Vasos.

Dollar General is advertising the $1 an item to show customers there is still a place for them to shop and save money, while other consumer places are raising their prices, according to the report.

Most Dollar General stores are located in low-income rural areas where it sells food and household essentials.

The report describes the rival, Dollar Tree, as a store that targets “middle-income customers hunting for party goods and other knickknacks.”

Vasos said most Dollar General customers are those with fixed incomes and often run out of money at the end of the month.


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