Consumers take to social media to vent their frustration with Dollar Tree’s price plan.
Dollar Tree (DLTR) – Get Dollar Tree, Inc. Report has passed the buck: It’s now a buck and a quarter.
And if social media is any indication, consumers are not happy about the discount retailer’s planned price increase.
The Chesapeake, Va., company said in November that it planned to roll out price increases that will take its midpoint to $1.25.
‘My Last Straw’
At the time Chief Executive Michael Witynski called the price hike a “monumental step.”
“Our Dollar Tree pricing tests have demonstrated broad consumer acceptance of the new price point and excitement about the additional offerings and extreme value we will be able to provide,” Witynski said.
Consumer acceptance seemed to be decidedly lacking on Twitter.
“I think Dollar Tree changing their prices from $1 to $1.50 was truly my last straw…” one person commented.
“BITCH! dollar tree really is $1.25 now, im appalled!” another declared.
“They need to change the name of Dollar Tree and name it ‘A Dollar and Sum,'” was another response.
Dollar Tree unveiled plans in late September to test the sale of merchandise priced at $3 and $5, alongside its traditional $1 offerings, in 500 so-called “Dollar Tree Plus” stores by year’s end, with another 1,500 planned for fiscal 2022.
Some Shoppers Say: ‘We Get It’
Some shoppers were more understanding about the retailer’s decision.
“After 35 years the price went up,” one person tweeted. “It was going to happen. I know it’s hard on some people but we had a store in the area have all of it’s employees walk out over wages and so they raised wages in the stores in the area.”
Last week. Truist analyst Scot Ciccarelli showed some love for Dollar Tree as he kicked off coverage of the company with a buy rating and $162 price target, according to the Fly.
The analyst said that despite several years of disappointing performance and concern about rising inflationary pressures on low-to-middle income consumers, Dollar Tree’s recent price increase will result in a “sizable” acceleration in sales and profit.
Dollar Tree did not immediately respond to a request for comment.
At last check Dollar Tree shares were off 1.6% at $128.71.
