Dollar stores' popularity spikes in pandemic, worrying some towns, but rising prices might bring more fresh foods

Dollar stores have experienced unprecedented popularity and growth during the pandemic. "Research suggests 88% of Americans shop at dollar stores at least sometimes. And about 4 in 10 new store openings in the country this year are for dollar stores," NPR reports. "But that proliferation has some communities concerned. Dollar stores have fewer choices for fresh food. And for some neighborhoods, the stores are their only place to shop." That is the case in many rural areas.

Dollar Tree is planning to raise prices and introduce more fresh foods. The retailer said it will "start selling products at $1.25 and $1.50 or other prices slightly above $1 in some of its stores, expanding current tests selling items at higher price points as supply-chain snarls, a tight labor market and inflation push costs higher," Sarah Nassauer reports for The Wall Street Journal. "The addition of more above-$1 items is a response to rising costs and positive consumer feedback on tests so far, Michael Witynski, chief executive of Dollar Tree, said in an interview. With the above-$1 price point, the company can offer new products such as more frozen meat or seasonal items, which could encourage shoppers to spend more per trip, he said."

The price increase could ultimately benefit shoppers: "Analysts say Dollar Tree's commitment to its $1 price point has led it to scrap certain items it could no longer afford to sell, such as bleach, or to stock lower-quality versions of some goods as prices rise," Mary Hanbury reports for Business Insider. "Its new flexibility on price could give it more room to expand its range for customers: more variety, more products, and more brands."