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The dollar store is officially dead (And you still can’t see that it’s the economy stupid!)
- Dollar Tree on Tuesday said it’s adding $1.25 and $1.50 price points at some stores.
- Until then it was the last big dollar-store chain sticking to a $1 price cap.
- The news signals the death of the traditional dollar-store concept in the US.
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Dollar Tree, the last of the big dollar-store chains selling items for $1 or less, on Tuesday said it was officially “breaking the buck” by adding $1.25 and $1.50 price points in some stores.
The news sent its stock price soaring as investors eyed sales growth without the restraint of $1 pricing. It also signaled the end of the true $1-and-under concept among US retailers.
Dollar stores have existed in the US for decades and started to take off in the post-World War II economy. While these stores began life selling products at $1 or less, most were quick to diversify and raise prices in line with inflation. But Dollar Tree didn’t.
Dollar General, the largest dollar-store chain in the US by store count, opened its first location in 1955. Created by the father-son duo J.L. and Cal Turner, their idea was to replicate “Dollar Days” sales found year-round at department stores in Nashville, Tennessee, and in Louisville, Kentucky…..more here
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