By Sophie Foster
Opinion Editor
Your dollar store purchase might be several digits off from a dollar now, and you have corporate greed to thank.
According to Business Insider, Dollar Tree — which maintains a location in Kent Plaza on Washington Avenue — is “adding items with prices as high as $7, causing customers to question whether shopping at the dollar store is even worth it anymore.”
Up until now, Dollar Tree contrasted competitors such as Dollar General by boasting a universal, store-wide price of $1.25. Now, the chain will be aligning with Dollar General’s practice of selling merchandise at a variety of prices much higher than the dollar its name pledges, according to Business Insider.
This move comes after Dollar Tree’s purchase of the Family Dollar chain, which is seeing nearly 1,000 store closures following a drop in income and stock value, according to AP News. It seems likely that the corporation was ill-prepared to absorb the competing entity, leading to fragile business strategies across the board.
Inflation is the most likely culprit for the situation and it is hurting low income consumers more than it could hurt any company.
According to USA Today, “economic conditions have changed in recent years. Dollar stores have said they have taken a hit from inflation, reduced government benefits for the Supplemental Nutrition Assistance Program…and inventory losses.”
This is far more dire for shoppers just looking to stock up on groceries than it is for the Dollar Tree locations doing less business. The restriction of programs like SNAP and circumstances like inflation make essentials, including food and hygiene products, unaffordable for many Americans, particularly those already dependent on dollar stores for grocery needs. This price hike will likely mean many of them will be forced to choose which meals to skip or what need to overlook.
The reality is that some “shoppers have flocked to dollar stores to save money as inflation has pushed prices for many consumer goods higher. Dollar Tree has even said it has noticed more customers who make six-figure incomes stopping by its stores,” according to Business Insider, which reported that a store manager in Minnesota noted that many lower income customers would likely be turned away by the steeper price points.
“A quarter don’t sound like much, but when that’s the people you’re catering to, it is a lot,” the manager said for Business Insider.
What we must take into account are factors like minimum wage stagnation and the aforementioned inflation impact. When minimum wage increases far more slowly, if at all, than the rapidly rising inflation rate, Americans previously able to provide for themselves or their families become less and less able to do so.
Dollar Tree’s price increase should awaken deeper frustrations directed at institutions that are even more powerful than the massive chain of dollar stores.
The bigger issue is the systemic failure to accommodate low income communities in the United States, which is the real explanation for Dollar Tree’s price increase. Basic grocery necessities have become unaffordable in the same capacity as other needs, such as rent, healthcare, and education.
In the midst of an election season, Americans need to have low income communities in mind and refuse to excuse companies’ insistence on building riches on their backs.
It is time to conduct a thorough overhaul of financial structures that abuse the working class. While political awareness and a pile of cast votes will not bring about that necessary shift, it may be the first step in a dialogue toward lasting change.
Photo by Sophie Foster
Photo caption: Dollar Tree is facing scrutiny and outrage for drastically increasing its price maximum from the current $1.25 to $7.