Do not expect everything to cost a dollar in dollar stores.
Reuters reports that Dollar Tree and Dollar General warn customers that prices will rise for US buyers due to the increase in tariffs in President Donald Trump's trade war with China. Dollar General executives said the retailer was working with suppliers to "mitigate the impact," but that the items will likely cost more in the future.
"Even with these efforts, we believe our buyers will face higher prices as 2019 advances," Dollar general financial badyst John Garratt told badysts on a post-earnings visit on Thursday.
"We hope it will be impressive for our business and especially for consumers in general," Dollar Tree President and CEO Gary Philbin said in a statement.
According to Business Insider, Dollar Tree has already begun quietly testing a collection of "Dollar Tree Plus!" Products that cost more than $ 1 at some stores this month. The company, the last major chain of dollar stores to keep all prices at $ 1 or less, said it would expand the higher prices to more than 100 stores soon.
"With its" Everything is a dollar "model, Dollar Tree has remained one of the most exclusive, differentiated and defensible brand concepts of all value retailers, but we have always been a" test and learn "organization. who is committed to evaluating all opportunities to deliver great value to our customers while driving the creation of long-term value, "said Philbin in the company's earnings release.
Fearing that the customer will react violently, Forbes reports that dollar looks are creating new initiatives to generate more traffic, including a Dollar General partnership with Western Union for customers to transfer money, and add alcohol to 1,000 of them. Dollar Tree Family Dollar stores.
Reuters reports that both companies reported strong quarterly sales on Thursday, prompting shares to rise 6 percent, but executives from both companies said the cost of the rates would likely be pbaded on to consumers. Other companies, such as Walmart, Coca-Cola, Best Buy, Procter & Gamble, Ford, Harley-Davidson, Macy & # 39; s and The Gap, have also said that prices will rise if rates continue.
Trump intensified the trade war this month by raising Chinese import tariffs from $ 200 billion from 10% to 25%, alleging that China reversed commitments made in previous negotiations. China retaliated by raising tariffs of $ 60 billion dollars on US products, including batteries, spinach and coffee.
Dollar General has more than 15,000 locations in 44 states, while Dollar Tree operates more than 7,100 stores nationwide. Both have stores throughout CNY and Upstate New York.