Consumers may soon see items at the dollar store that cost more than $1.
Dollar Tree began testing out a new model that will offer products more expensive than $1 in more than 100 of the company’s more than 7,000 stores, according to the Virginian-Pilot.
Since the company imports 40% of its products from two dozen countries, including China, President Trump’s $250 billion of tariffs on Chinese imports are a blow to the low-margin, high-volume company.
“The tariffs are more difficult for Dollar Tree than rivals because the company has a one-dimensional business model that is not easily flexed or changed,” Neil Saunders, managing director of GlobalData Retail, told Business Insider.
But Dollar Tree CEO Gary Philbin said customers should not be concerned.
He also said the company plans to continue its process from when previous tariffs were imposed, mitigating the higher costs by changing how they buy, where they buy, and how they ship their purchased products.
Philbin said that the company will add sections to stores with items priced higher than a dollar clearly marked, but said products currently marked $1 will not go up in price.
[Also read: Trump’s China tariffs drag business profitability to pre-tax cut levels]
