While it may seem like U.S. consumers are spoiled for choice when it comes to shopping options nowadays, the picture is a bit murkier upon further inspection.
Most retailers try to tempt customers in with limited time sales, spiffy new brands, exclusive collaborations, and new ways to buy.
Related: Iconic retail chain begins going-out-of-business sales
Some retailers offer their goods in bulk, like Costco and Sam’s Club.
Others offer inventory in smaller quantities for what seems like far cheaper (though this can be far more complicated).
And as a busy shopper in the U.S., it can be hard to tell whether you’re actually getting a good deal or not.
Particularly when prices are as volatile as they are.
The most recent CPI found that prices rose 0.2% during the month of February. That’s up from 0.5% during the month of January and puts our annual rate of inflation at approximately 2.8%.
Though the most recent data is cooler than analysts expected, many of us still feel the pinch at the grocery or big box store. Things aren’t getting cheaper.
Here’s a look at how some core goods and materials are changing over the past month:
Food: increase 0.2%Energy: increase 0.2%Electricity: increase 1%New vehicles: decrease 0.1%Used vehicles: increase 0.9%Apparel: increase 0.6%Shelter: increase 0.3%Transportation: decrease 0.8%Medical care services: increase 0.3%
People shop at a Dollar Tree. Lead
Image source: Scott Olson/Getty Images
Core goods are more expensive
So many of our most basic needs, from fuel to eggs, are pricier this month than they were just 30 days prior.
“The index for shelter rose 0.3 percent in February, accounting for nearly half of the monthly all items increase. The shelter increase was partially offset by a 4.0-percent decrease in the index for airline fares and a 1.0-percent decline in the index for gasoline,” the CPI found.
More closings:
Another struggling mall retail chain closing more storesStruggling supermarket chain closes more locationsPopular bank closing dozens of branches (locations revealed)
“Despite the decrease in the gasoline index, the energy index rose 0.2 percent over the month as the indexes for electricity and natural gas increased. The index for food also increased in February, rising 0.2 percent as the index for food away from home increased 0.4 percent. The food at home index was unchanged over the month.”
One way some customers try to avoid rising costs is by shopping at dollar stores.
Unlike big warehouse stores like Costco, dollar stores sell their goods in much smaller quantities, so merchandise appears to be much cheaper. Often, however, customers end up paying less because they’re buying a smaller amount of a given item.
Dollar Tree makes a tough decision
This can be a winning model for customers who really need to pinch pennies, though it’s not always the most advantageous for folks who do the math and see how much they’re getting, pound for pound.
And now, Dollar Tree (DLTR) is looking to offload one of its ill-fated investments in fellow chain Family Dollar.
The dollar stores had been facing increasing pressure from other competitors, like online marketplaces and larger retailers that offered better value, over the past few years.
Related: Global retail chain closing most stores, no bankruptcy yet
For background, Dollar Tree bought Family Dollar in 2015 — before the pandemic — for about $9 billion. It’s now offloading that investment to private equity firms Brigade Capital Management and Macellum Capital Management for $1 billion.
As a part of the deal, Family Dollar will close over 1,000 underperforming store locations as leases expire.
“With the sale of Family Dollar set to close later this year, we will be able to fully dedicate ourselves to Dollar Tree’s long-term growth, profitability, and returns on capital,” Dollar Tree CEO Mike Creedon said.
