In an odd move, intra-quarter Dollar Tree management has announced that it is going to introduce more price points above $1. Management is clearly reacting to the inflationary environment driving material earnings pressure in the face of a fixed $1 price point. Historically the company defended its ability to use multiple levers to maintain margin and value at $1. Now, however, the company seems to be acknowledging that ability to maintain margin and value is no longer the case. There are both risks and opportunities for DLTR around this larger multi-price point initiative as a well executed breaking of the buck can be one of the most powerful earnings drivers in all of retail, yet a hasty, poorly executed one could mean upsetting core customers. Here is the replay link and key takeaways of our call:
Video Replay Link: CLICK HERE
