What is a "Dollar tree"? 

Dollar Tree is a discount retailer that runs more than 1,000 stores in 48 states under its namesake banner and Family Dollar brands.

Dollar Tree sells several household products, toys, clothes, and more! It is a shop that sells everything for a mere amount of $1. Unbelievable, right. 

They buy things like food, school supplies, and other stuff in bulk, making it possible for them to sell them at low prices.

The first store of Dollar Tree was opened in 1986 with only 2,500 square feet of area. Today, they own over 14 000 stores across America. The brand grows by expanding its target market and making itself available online and in local neighborhood stores. 

Rise in price It's that time of the year again. Do you know those signs on everything in the store that says "Dollar Tree"? Well, they aren't dollar stores anymore, and it wouldn't surprise me if we see some other significant changes this year as well. 

Dollar Tree has raised prices on certain items by 25 cents. The company stated that it had made a move to keep up with its competitors, like Walmart and Dollar General, who too have increased many of their prices. 

They probably want to keep the name, which is pretty renowned at this point because it makes people think that they are getting a better deal. 

 The company's primary focus is to provide low everyday pricing of products for its customers. They also added that the rise in prices would be different for each item and region, but they won't affect all stores' products. 

 According to a report, in a Dollar Tree store in downtown Chicago, white plastic plates were marked up to $1.25 from $1, while a 12-pack of Bounty paper towels went from $6 to $7.25. A 3-ounce box of Nescafe Taster's Choice coffee was up 25 cents from 75 cents.  

According to a report from the folks at Bloomberg Business, prices on over 300 items will increase by up to 25%. This is still significantly lower than most of the competition, including Walmart and Target, around $1.45 for many items. 

In a sign that customers may be starting to bulk, Dollar Tree late last year lowered its fourth-quarter profit forecast because fewer people than expected came into its stores. The company also faces steep competition in the discount retailing business with the expansion of dollar chains like Five Below and Dollar General Corp., which are expanding rapidly across the U.S. Meanwhile, Wal-Mart is increasing its focus on small-dollar items like food and household basics after raising prices earlier this month on many grocery items.  

Dollar Tree keeps its prices low by offering smaller packaging for almost all of its products. For example, 12 oz cans of Pepsi will remain at $1, while items like dish soap and trash bags increase in price. It saves them money on things like shipping and storage without significantly impacting the consumer's wallet. 

Reasons for the increase in prices There are a few reasons for the increase in prices at these dollars tree stores. 

Bloomberg notes that they are raising their prices because of higher transportation costs, new food safety mandates, and tariffs on some materials like newsprint. 

Furthermore, With the increase in the price of all the things in the economy, it leaves no profit margin for the store itself, making it difficult for them to sell good quality products at low prices. 

Another primary reason for the rise in prices is that the demand for goods has gone up while the supply stays the same. It means that they cannot buy as many interests as before, but people still want these goods, so it forces the dollar tree to raise its prices. 

Conclusion 

It is not the first time that store has increased its price over the years. I've seen individual coffee creamer cups increase from 50 cents to 75 cents last year. The most notable change was when Dollar Tree started selling five-pack snack bags of chips. They raised the price from $1 to $1.25 last year, which was pretty surprising for everyone, but after giving it a thought it makes sense because they need room for profit, and if you buy a small bag every time you go in the store that adds up! Apart from this, even with the increase in prices at Dollar Tree, their rates are much lower than those offered by other retailers, making it a better and good choice.