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The dollar store is officially dead

Added 11-23-21 11:14:02am EST - “For years, Dollar Tree was the only big dollar-store chain that stuck to a $1 price cap. Now, it's raising prices to $1.25.” - Businessinsider.com

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Posted By TheNewsCommenter: From Businessinsider.com: “The dollar store is officially dead”. Below is an excerpt from the article.

Dollar Tree, the last of the big dollar-store chains selling items for $1 or less, on Tuesday said it was officially "breaking the buck" and raising prices to $1.25 after testing these prices earlier in the year.

The news gave a boost to its stock price as investors eyed sales growth without the restraint of $1 pricing. It also signaled the end of the true $1-and-under concept among US retailers.

Dollar stores have existed in the US for decades and started to take off in the post-World War II economy. While these stores began life selling products at $1 or less, most were quick to diversify and raise prices in line with inflation. But Dollar Tree didn't.

Dollar General, the largest dollar-store chain in the US by store count, opened its first location in 1955. Created by the father-son duo J.L. and Cal Turner, their idea was to replicate "Dollar Days" sales found year-round at department stores in Nashville, Tennessee, and in Louisville, Kentucky.

According to Cal Turner's son, it didn't take long for prices to creep up. Today, the chain offers most private-label and national brands at $10 or less, and only a small portion of the store is devoted to $1 items.

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