Viral video explains why rising dollar price of tree affects low-income buyers

A TikToker has gone viral after sharing a series of videos explaining how Dollar Tree’s 25-cent increase is heavily affecting low-income buyers.

In one video that has amassed more than 125,000 views, TikTok user @lilloworldwide took to a Dollar Tree and demonstrated how the 25-cent price increase quickly adds up as customers buy more items.

“Let’s see what it would have cost for what I’m going to get and what it is going to cost now,” the TikToker said in the video.

She started tossing items into her cart, including batteries, plastic cups, gift bags, and various other random items. She then checked and arranged all the items purchased on a table.

“So when they’re laid out like this, and you can count them if you want, I’ve got 19 items,” @lilloworldwide said. “Did you see how much I paid? $ 25 if I round down. “

She explained in the video that before the 25-cent increase, all items would have cost her $ 19.

“That means $ 5 that could have been spent on food, utensils or whatever, school supplies, I can’t spend at the dollar tree anymore.”

She also said that while she was shopping she saw a customer having to hand over the food he was trying to buy because he didn’t have enough money due to the new prices.

“So even if you think it’s not a big deal, it’s a big deal,” she explained.

At the end of last month, the retail chain announced the price hike, citing rising supply chain and freight costs.

Dollar Tree said they tested the price change at 100 different stores and found that about 91% of customers said they would continue to shop at Dollar Tree regardless of the 25% price increase.

The 25-cent price increase will roll out at Dollar Trees across the country by the end of the first quarter of 2022.

In a statement, Dollar Tree said the price increase would allow the company “to expand its offering, introduce new products and new sizes.” The release also said the price change will allow the company to reintroduce products that were previously “on hold due to the constraints of the $ 1 price.”

Dollar Tree CEO and Chairman Michael Witynski said he believes that “testing additional prices above $ 1 for the Dollar Tree product will allow us over time to expand our assortments, introduce new products. new products and meet more of our customers’ daily needs “.

But many customers are angry with the price increase, saying that although inflation is at a high level, the company has yet to announce plans to increase employee wages.

“They say 25 cents is not a lot, but if it is, why won’t employers give people a 25 cent raise …” one user said in the comments.

A viral TikTok explained how the 25-cent price increase at Dollar Tree can affect low-income buyers.
Frédéric J. Brown / AFP via Getty Images

Others mentioned that a 25 percent price increase is unknown for many retail stores, regardless of the fact that the mark-up is only 25 cents.

“Before, you could spend $ 21 and get 20 items,” commented another user. “Now you can get 15 items for $ 21. That’s important. So much.”

In other video viewed over 2 million times, @lilloworldwide called out Dollar Tree for announcing the price increase without “relaxing” customers.

“You really just went looking for gold, how d * mn you could have warned b * tch,” she said in front of a sign announcing the new sign at $ 1.25.

In the comments for the video, many users mentioned that while 25 cents may not sound like a lot, for many people it becomes a problem not to be able to afford groceries and other products like before.

“That’s a 25% increase in their prices, which means people who live on it are also losing 25% of their budget,” one user commented.

Many have mentioned that now that Dollar Tree plans to increase the prices of all items to $ 1.25, it is potentially cheaper to buy the items at Walmart.

“I mean, you all realize low income people exist, don’t you? @Lilloworldwide replied to a comment calling it cheap for talking about the 25 cent price increase.

“Maybe it’s not that people are cheap, but that people need these things to survive.”

News week contacted Dollar Tree for comment, but did not receive a response in time for publication.