SocraticGadfly: Will Dollar Tree's new pricing strategy work?

August 25, 2022

Will Dollar Tree's new pricing strategy work?

As most people know, Dollar Tree is now Buck Twenty-Five Tree on most of its stuff.

Well, scratch that.

The one nearest me, and presumably this is national, now has most of two aisles devoted to "specials" for $3 or $5.

Will customers pay, or will they comparison shop?

Some things, I know are cheaper elsewhere. Even if it has a slightly bigger bottle, and even if rising oil prices are part of the reason why for jumps in prices in product in general, I can get a bottle of gas treatment at Walmart for less than $3 I can tell you without looking.

And, if I need a 7-inch skillet, if I want to buy as part of a group of cookware, I can get it cheaper than $5 at Wally, and get a lid with it, which $5 at Buck-Twenty-Five Chuck doesn't give you.

What many people may still NOT know is that Dollar Tree also owns Family Dollar. And, I'm venturing the parent is trying to work on some synergies, even perhaps charging a bit more than at Family Dollar, but not too much, in hopes that people won't comparison shop, at least that hard. 

I might just do that; I have both stores within walking distance.

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