Don't expect everything to cost dollars at dollar stores anymore.
Reuters reports Dollar Tree and Dollar General are both warning customers that prices will go up for US customers due to rising rates in President Donald Trump's trade war with China. Dollar General executives said the dealer worked with vendors to "reduce impact," but the items mentioned are likely to cost more in the future.
"Even with this effort, we believe that our customers will face higher prices as the 2019 progress, Dollar Chief Finance Director John Garratt told analysts on a post-service call Thursday.
" business and especially for consumers in general, "says Dollar Trees president and CEO Gary Philbin in a statement.
According to Business Insider, Dollar Tree has already started testing a" Dollar Tree Plus! "collection of products that cost more than $ 1
"Dollar Tree has with its "Everything" said Dollar model has been one of the most unique, differentiated and definable brand concepts in all value retail. However, we have always been a "test-and-learn" organization committed to evaluating every opportunity to deliver great value to our customers while driving long-term value creation, Philbin says in the company's earnings release.
Fearing concerns about customer backlash, Forbes reports dollar stars come up with new measures to drive more traffic, including a Dollar General partnership with Western Union for customers to transfer money, and add alcohol to 1000 of the Dollar Trees family dollar stores.
Reuters Report both companies reported strong quarterly sales Thursday, and sent stocks up about 6 percent, but executives for both companies said the cost of tariffs would be shifted to consumers. Similarly, other companies, including Walmart, Coca-Cola, Best Buy, Procter & Gamble, Ford, Harley-Davidson, Macy and Gap, have said prices will go up if prices continue.
Trump increased the trade war this month of increasing duties of $ 200 billion of Chinese imports from 10% to 25%, claiming that China backtracked on commitments it made in previous negotiations. China retaliated by raising tariffs of $ 60 billion of 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.