Americans’ appetite for holiday shopping continues to grow, here’s why
Online shoppers spent more than $23 billion on this year’s Black Friday and Cyber Monday sales, breaking records.
100-yen stores are becoming more like “100-yen stores” as discount chains continue to ratchet up prices, online discount enthusiasts are pointing out on social media.
Dollar Tree appears to have increased the standard price of $1.25 to $1.50 due to an increase in the number of key items, and some items that were previously priced at $1.50 have now increased to $1.75. The company began changing its product price points over the summer, according to TheKrazyCouponLady.com, a website dedicated to helping shoppers get the most value out of their dollar.
But it appears it took months for shoppers to notice.
But analysts say the chain remains a haven for budget shoppers, especially during the holiday season.
“Consumer sentiment has fallen to historic lows as tight financial conditions and inflation fatigue have taken their toll,” said Brasha Arnold of research firm Placer Eye. “Still, some retail categories have seen steady growth in visitor numbers, and dollar stores stand out among them.”
TheKrazyCouponLady.com asserted that the “vast majority” of in-store items are still priced at $1.25.
“Eighty-five percent of our stores are still under $2, so think about it. When you walk into a store, you see value in every corner. I think our customers are really happy about that,” Dollar Tree CEO Michael Creedon said on an earnings call in November.
When did 100 yen stores stop being 1 dollar stores?
Dollar Tree began introducing higher price points in 2019, introducing Dollar Tree Plus stores that sell items in the $3 and $5 price ranges. Following the success of these stores, the company expanded the concept in September 2021.
However, the discount retailer did not increase the base price by $1 until November 2021. Citing inflation, Dollar Tree announced on November 24, 2021 that it would be rolling out price increases to $1.25 on many items in its stores.
Dollar Tree announced further price increases in March 2024, increasing the price of some products from $1.25 to $1.50 and increasing the price of “Plus” items to $7.
According to TheKrazyCouponLady.com, a thorough investigation into which prices have gone up, budget-minded shoppers are reporting that Dollar Tree has quietly raised prices on some items from $1.50 to $1.75 throughout 2025.
Why do 100 yen shops raise their prices?
Dollar Tree warned investors over the summer that tariffs and price volatility could significantly depress quarterly profits. This forced the company to negotiate with suppliers, select new products, scrap others, buy from other countries, and raise prices to deal with the tariffs.
Analysts say a variety of new, more expensive products are also driving impulse purchases among shoppers who come to stores for essentials and attracting higher-income shoppers. So, even though foot traffic may decrease, spending per visit increases.
“Dollar Tree has been able to offset some of this weakness (from lower-income and economically constrained shoppers) by continuing to attract new customers from higher-income groups and by increasing spending slightly among some existing middle-income shoppers,” said Neil Saunders, managing director at researcher GlobalData.
Medora Lee is USA TODAY’s money, markets and personal finance reporter. Please contact mjlee@usatoday.com. Subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
