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Dollar Tree Stops Carrying Eggs Over Price Hikes

Dollar Tree has announced that it needs to stop carrying eggs over concerns that the budget-friendly retailer can’t afford the overhead for the item anymore. The store courted controversy in 2021 when it announced that it would be moving its regular item price from its longstanding $1 point to $1.25 to meet growing inventory costs.

Now, with the price of eggs spiking to unusual levels, it seems Dollar Tree has been priced out of the egg business. With egg prices spiking 38% for producers in February, the store simply can’t afford to stock the item any longer.

Egg Price Skyrocket

It’s no surprise to consumers that eggs are more expensive now than ever before. The 55% increase in egg prices throughout February has been felt by most American households, many of which are still struggling to cope with incredibly persistent inflation in every part of the economy. 

This pattern has deeply frustrated many Americans, as reports indicate that profits for producers are at an all-time high. Why are prices going up in the name of covering overhead costs if these companies are setting record-breaking profits?

Will They Be Back?

Dollar Tree has noted that it plans to return eggs when prices stabilize. “Our primary price point at Dollar Tree is $1.25. The cost of eggs is currently very high,” explains Randy Guiler, a spokesperson for the company. Guiler also remarked that the item will return to Dollar Tree’s shelves when “costs are more in line with historical levels.”

Family Dollar, a similar store with a slightly different business model, will continue to carry eggs. Notably, Family Dollar is owned by the same parent company as Dollar Tree but doesn’t stick to a strict $1.25 price point for its inventory. 

Cost Crisis

Lower-income families have increasingly begun to rely on dollar stores like Family Dollar, Dollar Tree, and Dollar General for their food shopping. The price of groceries at standard grocery retailers has spiked considerably in the past few months, with little relief in sight. Research indicates that dollar stores are some of the fastest-growing food retailers in the United States.

Time will tell whether this rampant inflation will continue throughout 2023 or if it will cool off as production schedules and workforces return to pre-2020 levels. However, some economists are warning Americans that this might be the new normal and to be prepared to make budget adjustments to keep their grocery costs balanced against their other bills.