Dollar Tree, known to many as the only true dollar store in the area – where everything really is $1 – may be adding pricier items to its inventory amid pressure from new tariffs.
According to Business Insider, Dollar Tree manufactures about 40 percent of its products in China. The increased prices would help offset the cost of importing the inventory.
The retailer has been testing its new Dollar Tree Plus! collection at some stores for the past two weeks. According to the company, the testing will be expanded to more than 100 urban, suburban and rural Dollar Tree locations.
“With its ‘Everything’s a Dollar’ model, Dollar Tree has remained one of the most unique, differentiated and defensible brand concepts in all of value retail. However, we have always been a ‘test-and-learn’ organization that is committed to evaluating all opportunities to deliver great value for our customers while driving long-term value creation,” CEO Gary Philbin said in a press release.
According to Business Insider, “Dollar Tree’s business model is built around operating on a low-margin, high-volume basis. Its theory is that with rock-bottom prices, cash-strapped customers are able to buy more.”
In recent months, however, analysts have said the company is one of the most vulnerable to tariffs imposed by President Donald Trump.