Dollar Tree Inc. is famous for selling most of its products—from a pair of flip flops to a small bottle of detergent—for a dollar apiece.
The strategy, which draws in loyal shoppers looking for bargains, has left the discount chain with less room than rivals to manage rising costs this year. The Covid-19 pandemic has pushed up transportation rates, workers’ wages and prices for some raw materials.
“We are still going to deliver at a dollar as our customers have expected for over 30 years,” said Michael Witynski, a grocery veteran who joined Dollar Tree in 2010 and took over as its chief executive a year ago. The challenge, he said in a recent interview, is to continue to find ways to buy products such as holiday decorations, snacks and craft supplies for around 43 cents, then charge $1 to shoppers.
Prices are rising for a range of goods and services as shipping and manufacturing…