Discount retailer Dollar Tree has announced plans to add items priced more than $1 to its stores.
On September 29th, Dollar Tree released news of its plan to stock shelves with items priced at the $1.25 and $1.50 price mark, causing some to question if the company name still holds relevance.
Rising shipping costs and supply chain issues have added more of an incentive to increase prices, to which the company has received positive customer reactions in previous tests.
CEO Michael Witnyski states that the increase in prices will allow for a “broader product assortment” and variety to its stores that will continue to focus on offering customers value-based items.
Evolution is necessary if you want to stay competitive and be around to live another day, even if that means breaking the oath on the sign in front of your store.
Adding items north of the $1 mark isn’t a big deal, especially since it’s backed up by research from their existing customers.
Sure, they’ll face some criticism for straying away from the $1 name, but any major move worth its damn will have critics.
As a leader, your role is to identify business issues (costs associated with shipping and supply chain issues in this case) and come up with clear-cut solutions while weighing your options.
In this situation, the company created a win-win scenario, as the higher-priced items will allow for more variety of products and the ability to continue to ride the wave towards positively impacting their bottom line.
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