NEW YORK (AP/KMOX) - Dollar Tree was the last U.S. dollar-store chain to stay true to its $1 promise, but they've been testing a new "Dollar Tree Plus!" collection of products that cost more than $1.
It's partially because of U.S. tariffs on Chinese imports that will affect stores like Dollar Tree, Walmart and Macy's that those tests will expand at Dollar Tree.
"With its 'Everything's a Dollar' model, Dollar Tree has remained one of the most unique, differentiated and defensible brand concepts in all of value retail. However, we have always been a 'test-and-learn' organization that is committed to evaluating all opportunities to deliver great value for our customers while driving long-term value creation," said CEO Gary Philbin, according to BusinessInsider.com.
John W. Garratt, chief financial officer at Dollar General, told investors on a call that the chain was doing everything it could to minimize the impact of tariffs on its customers but he believes "our shoppers will be facing higher price as 2019 progresses."
As it stands right now, experts say the tariffs on Chinese imports already in place will cost American families an average of more than $800 a year.
Both Dollar Tree and rival Dollar General reported on Thursday solid sales gains for the fiscal first quarter, but they warned that they would have to raise prices if the fourth round of tariffs on imports from China goes into effect.
Retail sales have been on a seesaw pattern in 2019. The Commerce Department reported earlier this month that after a big jump of 1.7% in March, U.S. retail sales declined 0.2% in April as Americans cut back their spending on clothes, appliances, and home and garden supplies.
Last week Foot Locker Inc. and more than 170 shoe and retail companies, including Adidas and Nike, sent a letter to President Donald Trump urging him not to double down on new tariffs as the trade dispute with China drags on. Foot Locker's stock, down 6.5% in the week to date, fell about 1.4 percent in afternoon trading.
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