Food This Low-Cost Grocery Chain Is Raising Its Prices
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Order your weekly food haul in a snap. On days when you work late or barely have time for errands, it's incredibly convenient to order your groceries online. Not only can you stock up on fresh food and pantry staples at the click of a button, but you can also purchase personal care items, pet products, and cleaning supplies at most online supermarkets. Just imagine all the benefits a virtual grocery shopping trip brings—no parking, cashier lines, hygiene worries, and wasted time going up and down the aisles.
For some grocery stores—like, , , and more—what they sell and how can all be found in their name. It's the same case for Dollar Tree, a discount and variety store that's been in business for over 60 years. The low-cost chain sells food items like cereal, spices, baking mixes, canned goods, condiments, . However, Dollar Tree's token $1 pricing on all items is about to go up to $1.25, the company .
In the 35 years its been offering items for $1, Dollar Tree has navigated through rises in inflation, and although the company says this new price hike isn't in response to events of the past year (supply chain issues, as well as high merchandise, operating, freight, and distribution costs), it does come at a turbulent time.
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"[T]he Company believes this is the appropriate time to shift away from the constraints of the $1.00 price point in order to continue offering extreme value to customers," Dollar Tree explained in a press release. "This decision is permanent and is not a reaction to short-term or transitory market conditions."
Dollar Tree says thewill allow the company to keep up with wage increases, expand its product offerings and sizes, as well as bring in items that were previously discontinued because of the limitations of the $1 price point.
"The new price point will enable Dollar Tree to return to its historical gross margin range by mitigating historically-high merchandise cost increases, including freight and distribution costs, as well as higher operating costs," the chain said.
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Starting this month, customers at 2,000 locations will have to pay the extra 25 cents for items at 2,000 Dollar Tree locations. A full rollout to all locations is expected by the end of the first quarter of 2022.
When surveyed about the additional cost, 91% of shoppers said they would still shop at Dollar Tree with the same or more frequency, the company says.
This isn't the only place grocery shoppers will have to shell out more cash—supermarkets across the country are seeing the effects of inflation on their grocery bills, and unfortunately,.
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The World's Largest Online Retailer Is Dominating With Groceries .
Now, according to a recent data analysis report, 'grocery' is now the top category on Amazon thanks to Whole Foods Market.When Amazon bought Whole Foods Market in 2017, we knew it was a big deal for the brand. Now, according to a recent data analysis report from Consumer Intelligence Research Partners, LLC (CIRP), 'grocery' is the most popular category on the retail site—a title electronics used to hold. "Grocery has displaced electronics as the most popular category at Amazon," says Josh Lowitz, a CIRP partner and co-founder, "with almost a third of customers including grocery in their most recent purchase.