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Dollar Tree Loses its 35 Year War with Inflation
FEE Stories ^ | October 15, 2021 | Peter Jacobsen

Posted on 10/15/2021 12:40:06 PM PDT by Hojczyk

However, in spite of unpredictable swings in the economy and prices, one store has remained consistent throughout it all. Dollar Tree has long been known for being the last true “dollar store” which spans the whole US. For the last 35 years, when you walked into the Dollar Tree, you knew you wouldn’t spend more than one dollar per product.

All of that is changing, however. After 35 years, the Dollar Tree has announced they’ll begin to carry products with a price over one dollar. This invites two important questions: how was the store able to keep prices low for so long, and what is changing now?

Dollar Tree and the Art of Shrinkflation

To figure out why the Dollar Tree has decided to raise prices now, it’s important to consider why and how they’ve gone without changing prices for so long. As any bargain shopper knows, the Dollar Tree isn’t really the cheapest option out there. Buying large quantities in bulk is going to get you the best per unit money price every time. So if the Dollar Tree isn’t offering the cheapest per unit price, what’s the draw?

In a word: consistency.

Consumers like consistent prices and product availability.

Another way the Dollar Tree can keep their prices low is by shrinking the size of a product. Is the dollar 5 percent less valuable this year compared to last year? Easy fix—make your shampoo bottles hold 5 percent less shampoo. Economists call the practice of reducing the quantity or quality of a good while keeping its price the same shrinkflation.

Shrinkflation is a form of inflation because you’d have to spend more money to get the same quantity or quality as you did in a previous year. The prices have remained the same, but the products are worse.

(Excerpt) Read more at fee.org ...


TOPICS: Business/Economy; News/Current Events; Politics/Elections
KEYWORDS:
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1 posted on 10/15/2021 12:40:06 PM PDT by Hojczyk
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To: Hojczyk

That is going to hurt.

Maybe they can change it to Two Dollar Tree

or

Let’s go Brandon!


2 posted on 10/15/2021 12:44:36 PM PDT by Sequoyah101 (Politicians are only marginally good at one thing, being politicians. Otherwise they are fools.I ha)
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To: Sequoyah101

OMG, you made me spit coffee out my nose!

Let’s Go, Brandon! has become my husband’s favorite meme and every day he come’s home to show me new ones.


3 posted on 10/15/2021 12:48:24 PM PDT by Valpal1
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To: Hojczyk

I just remarked to a cashier at Dollar Tree yesterday that she never has to ask for a price check and she laughed!..............


4 posted on 10/15/2021 12:50:41 PM PDT by Red Badger (Homeless veterans camp in the streets while illegal aliens are put up in hotels.....................)
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To: Hojczyk

It’s been amazing they’ve been able to hold on for as long as they have...CPI has more than doubled in that time.


5 posted on 10/15/2021 12:55:12 PM PDT by rb22982 ( )
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To: Valpal1

My day is complete now. I can go to the shop and be secure that I have done my part.


6 posted on 10/15/2021 12:55:50 PM PDT by Sequoyah101 (Politicians are only marginally good at one thing, being politicians. Otherwise they are fools.I ha)
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To: Hojczyk

I bought scallions the other day. Same 50 cents per rubber banded bunch but I could swear the bunches looked skinnier. First thought was shrinflation.


7 posted on 10/15/2021 12:56:47 PM PDT by BiglyCommentary
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To: Hojczyk

Does anyone remember going to a “5 & 10”? They were stores where stuff costed 5 or 10 cents. Guess what? They will be back soon.


8 posted on 10/15/2021 12:56:49 PM PDT by frithguild (The warmth and goodness of Gaia is a nuclear reactor in the Earth's core that burns Thorium)
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To: Sequoyah101

The solution is simple and covers them for the future:

Dollar Tree changed to Dollars Tree.


9 posted on 10/15/2021 12:57:01 PM PDT by Codeflier (Please stop calling these violent totalitarian collectivist Democrats, liberals. )
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To: Sequoyah101

10 posted on 10/15/2021 12:57:38 PM PDT by Bobalu (Figure out what you like, learn enough to be dangerous, and then start fiddling around)
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To: BiglyCommentary

Your scallions were Obamasized.


11 posted on 10/15/2021 12:57:44 PM PDT by frithguild (The warmth and goodness of Gaia is a nuclear reactor in the Earth's core that burns Thorium)
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To: Hojczyk

In before the “Shrinkage” jokes.


12 posted on 10/15/2021 12:58:25 PM PDT by VastRWCon (Fake News")
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To: Sequoyah101

Remember Motel 6? Yep 6 dollars for a bed for the night, they sill call it motel6...

Super 8 same, 8 bucks for a night horrendous.

However a 1oz gold coin today still buys a 3 piece mens suit as it did 100 years ago... Buy AU and AG.

CD.


13 posted on 10/15/2021 1:15:07 PM PDT by Coffee_drinker (Drain The Swamp.)
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To: frithguild

“Does anyone remember going to a “5 & 10”? “

Oh yes...Woolworths! And the lunch counter! And Santa in his chair in the back of the store at Christmas.

Good old days.


14 posted on 10/15/2021 1:24:52 PM PDT by moovova (I'm dismayed that most of the world hates me for being non-vaxxed. Honest. No, really.)
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To: VastRWCon

“It shrinks?”
“Like a frightened turtle”
“Man I don’t know how you guys walk around with those things”
George....”I was in the pool! I was in the pool!”


15 posted on 10/15/2021 1:25:40 PM PDT by redshawk ( I want my red balloon. ( https://youtu.be/zNLpfEDliV0)
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To: Hojczyk

Biden’s inflation is out of control.


16 posted on 10/15/2021 1:27:57 PM PDT by tennmountainman ( Less Lindell CONS, More AZ Style Audits)
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To: frithguild

They will be back soon alright, but will charge $5 and $10 in inflated currency.


17 posted on 10/15/2021 1:38:59 PM PDT by Clemenza (Cloth masks are as worthless as the people who wear them )
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To: moovova

Woolworth’s had great grilled cheese sandwiches. Used to love going there as a child.


18 posted on 10/15/2021 1:39:53 PM PDT by Clemenza (Cloth masks are as worthless as the people who wear them )
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To: Hojczyk

The local store here in Maine sells birthday cards and other greeting cards for fifty cents each.

Some better quality cards are $1.00 each....for now, anyway.


19 posted on 10/15/2021 1:50:10 PM PDT by july4thfreedomfoundation (Donald J. Trump is my president, not the Commander-in-Thief, brain-dead Joseph Stolen)
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To: Clemenza

Yep! Back when bread was about 40¢.


20 posted on 10/15/2021 1:58:44 PM PDT by lizma2
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