With the excessive increase in the price of eggs, Dollar Tree is no longer able to sell the high-demand grocery item.
According to CNN, Dollar Tree has decided to stop selling eggs at its stores due to the company being unable to make money offering the grocery item at flat prices. The stores sell most of its products for $1.25, with a small selection of items being $3 or $5.
In recent months, the price of eggs has significantly increased. The cost of eggs jumped 38% for producers annually in February and 55% for shoppers. The average cost for a dozen Grade A large eggs was reported at $4.21. CNN reports that the significant price surge is due to short supply caused by deadly avian flu as well as high production costs and egg producers increasing their own profits.
Speaking about the decision to remove eggs from Dollar Tree stores, the company’s spokesperson Randy Guiler revealed in a statement, “Our primary price point at Dollar Tree is $1.25. The cost of eggs is currently very high.”
Guiler also shared that Dollar Tree will bring back eggs when “costs are more in line with historical levels.” Although Dollar Tree will no longer be selling eggs, Family Dollar, which the company also owns, will continue to sell eggs.
David D’Arezzo, who was a former executive at Dollar General and other retailers and now works as an industry consultant, revealed that the company also made the decision to remove eggs from its stores due to it having a “lean staffing model” in stores. This means that workers changing price tags every week on the grocery item to account for changes in the market could be considered an “extra strain” on the stores’ operations.
Dollar Tree Increased Pricing Point to $1.25 in 2021 Due To Inflation
In 2021, Dollar Tree announced that would be increasing its price point from $1 to $1.25 due to inflation. NBC News reported at the time that while he was blaming inflation, President and CEO Michael Witynski remained optimistic about how customers would react to the prices.
“Our Dollar Tree pricing tests have demonstrated broad consumer acceptance of the new price point,” Witynski shared. He also said there was some excitement about the additional offerings and “extreme value” that the company will be able to provide. “Accordingly, we have begun rolling out the $1.25 price point at all Dollar Tree stores nationwide.”
Neil Saunders, an analyst at GlobalData Retail, also said that Dollar Tree would be holding nearly all its goods to the $1-per-unit price point. He noted that most of the company’s customers understand the inflation struggles and how the supply chain had some slowdowns. The customers are still likely to stick with the company despite having to pay an additional ¢25 for items. “It’s not helpful, but it’s not disastrous.”