Dollar Tree breaks the $1 barrier as costs take a bite | Hacker News Reader

Dollar Tree breaks the $1 barrier as costs take a bite

apnews.com

15 pointsvyrotek12 comments

I wouldn't be surprised if higher fuel costs are increasing the costs of goods shipped to the stores which, of course, would eat into the company's profit. According to BLS, gasoline (all types) have increased 42.7% over the last year[0].

[0] https://www.bls.gov/news.release/pdf/cpi.pdf

The article mentions that

I can imagine there's a high correlation between the price increase and the fact that all that "stuff" is stuck.

https://am.jpmorgan.com/us/en/asset-management/institutional...

https://news.ycombinator.com/item?id=28687992

I think you can reasonably argue that you're still "dollar tree" if everything is $1.49 (rounds to a dollar) or maybe even $1.99 (hey, it's less than $2).

Daiso, a Japanese "100¥ shop", also has items for 200¥ and 300¥. People didn't stop buying there.

> “For decades, our customers have enjoyed the ‘thrill-of-the-hunt’ for value at one dollar - and we remain committed to that core proposition - but many are telling us that they also want a broader product assortment when they come to shop,”

I have never been inside of one, but is it not always the same products? This makes it appear as if it’s different all the time - that’s interesting.

There are a couple aisles of rotating seasonal stuff. Mine's obviously full of Halloween decor and candy but there's still leftover summer stuff even back to 4th of July supplies and excess back-to-school stuff.

They do bring in new regular items like they've added a good bit of craft / paint stuff in the past year.

I predict a three stage pundit response to inflation:

Stage 1: No, inflation isn't happening and what you're seeing isn't inflation at all. In fact, the exact opposite thing is happening because of [insert interpretation here]. You should really be more worried about deflation, that's the real issue.

Stage 2: Okay, some inflation is happening and it's actually normal, expected, and a good thing! Please don't be afraid. Here's how inflation can actually help you...

Stage 3: Yes, inflation has happened and it will continue for an unknown amount of time. That's actually positive and you should be thankful for it.

Any particular pundit you had in mind?

None in particular, and I'm sure you could generalize the three steps to something else people are worried about.

I have never heard of any pundit make these claims about inflation, which is why I asked. Also, what is something else that people are worried about.It is much easier for me to understand, if you can be more specific.

I was never intending to single out a particular pundit, but rather, a trend I have noticed.

Here's the NYT showing Step 1: "Inflation Fear Lurks, Even as Officials Say Not to Worry" "There is little evidence for a big jump in prices" and some historical nod to be worried about deflation "For much of that time, deflation, or falling prices, was a leading cause of anxiety among investors and economic experts." https://www.nytimes.com/2021/03/26/business/economy/bond-vig...

Here's another NYT article showing Step 2: "Inflation Is Popping From Sydney to San Francisco. It May Be a Good Sign." This one acknowledges inflation and wants to present it as something not to be scared about, and something that might actually be good. https://www.nytimes.com/2021/09/07/business/economy/inflatio...

"Inflation Has Arrived, but Washington Isn’t Racing to Limit Price Pops" Another acknowledgement that inflation is happening - in contrast to earlier articles dismissing the fears of inflation. And, a direct reference to the softening I described where it is described as a good thing: "Today’s inflation could offer benefits." https://www.nytimes.com/2021/07/26/business/economy/inflatio...

We aren't at Step 3 yet. But I'd like to emphasize that what I posted was a casual observation. I see it as a response to something that a pundit or talking-head doesn't want the public to panic about. Especially when it comes to the economy, where expectations tend to become self fulfilling prophecies.

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