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Dollar Tree starts testing new prices, braces for tariffs | The Virginian-Pilot

Don’t be surprised if you walk into a Dollar Tree and see new products for $3, $4 or $5. Conversely, when you walk into a Family Dollar store, you might see a $1 section.

The Chesapeake-based retailer that owns both brands began experimenting with new pricing in a limited number of Dollar Tree locations in mid-May, dubbing sections in the stores “Dollar Tree Plus!”

During a call Thursday to discuss first-quarter earnings with analysts, President and CEO Gary Philbin wouldn’t say how many or which stores were part of the test, but said the company planned to initially expand the pricing strategy to more than 100 stores. That would be just 1.4% of its overall store count. There were 7,102 Dollar Tree stores as of May 4.

The trade war with China has had an impact on the company, which imports much of its product from the country. As the United State contemplates even more tariffs on consumer goods, Philbin said, the company is doing what it did before, trying to mitigate any impact by changing how they buy, where they buy and how they ship what they’ve bought.

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Dollar Tree starts testing new prices, braces for tariffs | Consumer & Retail | pilotonline.com.

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