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Do not expect everything to cost a dollar in dollar stores.
Reuters reports that Dollar Tree and Dollar General warn customers that prices will rise for US buyers due to higher prices in the trade war between President Donald Trump and China. Dollar General executives said the retailer was working with suppliers to "mitigate the impact," but that the items would likely be more expensive in the future.
"Even with these efforts, we expect our customers to face higher prices as 2019 moves forward," said John Garratt, Chief Financial Officer, Dollar, Analyst, on Thursday.
"We expect this to impact both our company and consumers in general," said Gary Philbin, President and CEO of Dollar Tree, in a statement.
According to Business Insider, Dollar Tree has already begun to quietly test a collection of "Dollar Tree Plus!" Products that cost more than a dollar in some stores this month. The company, the last big chain of dollar stores to keep all prices down to $ 1 or less, said it would soon raise prices to more than 100 stores.
"With its" Everything is a Dollar "model, Dollar Tree has remained one of the most unique, differentiated and defensible brand concepts in all retail outlets. However, we have always been a test and learn organization that is committed to evaluating all opportunities to generate great value for our customers while creating long-term value, "said Philbin in his release. Press.
Fearing fears over negative customer reactions, Forbes is reporting new initiatives to drive more traffic, including a partnership between Dollar General and Western Union to allow customers to transfer money, and adding alcohol to 1,000 Dollar Tree Family Family stores.
According to Reuters, the two companies announced strong quarterly sales on Thursday, increasing their share by about 6 percent, but their executives said the cost of the rates would likely be passed on to consumers. Other companies, including Walmart, Coca-Cola, Best Buy, Proctor & Gamble, Ford, Harley-Davidson, Macy's and The Gap, also said prices would rise if rates were maintained.
Trump intensified the trade war this month by increasing tariffs on Chinese imports by $ 200 billion from 10% to 25%, saying China was reversing its commitments made in previous negotiations. China has responded by raising tariffs on $ 60 billion worth of US goods, including stacks, spinach and coffee.
Dollar General has more than 15,000 branches in 44 states, while Dollar Tree operates more than 7,100 stores across the country. Both have stores across CNY and in upstate New York.
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