Activist wants Dollar Tree to sell stuff for more than $1

[mahatmakanejeeves]

Clearly this guy is not one of their customers. What do you think keeps me coming back?

Activist wants Dollar Tree to sell stuff for more than $1
By Paul R. La Monica, CNN Business

Updated 8:40 AM ET, Mon January 7, 2019

(CNN) -- A dollar doesn't buy as much as it did 30 years ago.

That's why one activist investor thinks it's time for Dollar Tree to raise its prices.

Jeffrey Smith, CEO of Starboard Value, a hedge fund, wrote to Dollar Tree CEO Gary Philbin Monday to disclose that his fund had taken a 1.7% stake in the bargain retailer. Starboard said it wants Dollar Tree (DLTR) to make some big changes.

"Dollar Tree has kept its prices at $1.00 since its founding thirty years ago, despite the fact that $1.00 in 1986 is worth approximately $2.30 today, due to inflation," Smith wrote.

"However, the value that Dollar Tree has offered its customers has deteriorated because of the need to fit everything into a $1.00 price point. Products today are smaller or of lower quality than they were five, ten, and certainly thirty years ago," Smith added.
....

[sabbat hunter]

1. he is a billionare

hedge fund owner. Only thing he cares about is boosting his share price.

[Crutchez_CuiBono]

2. Funny how they can do the math from 1.00 to 2.30...

but can't seem to get that to translate to what workers need hourly, to keep up.

[Sherman A1]

3. I am guessing that

would make it The Two Dollar and Thirty Cent Tree?

[Crutchez_CuiBono]

7. "Two-30 Tree"

[TreasonousBastard]

4. Another hedge fund guy who thinks retail is easy-- just like Lambert, who...

put Sears lout of business.

How about we raise taxes on hedge funds and solve a lot of problems?

[Crutchez_CuiBono]

8. +1 Heck yeah.

[Croney]

5. I remember when the dime store sold things for a quarter.

Fraud, I tell ya!

[Yonnie3]

6. I'm old enough to remember ..

the transition from five and ten cent store to dime store. That nickle just didn't buy enough.

[wishstar]

9. Most other stores including Walmart and Target charge more for the same stuff

Greedy lying connivers like him think it is a bad business practice to not extract as much profit as possible from consumers. I shop there often because the same exact items or comparable products sell for up to $5 elsewhere. Lots of brand name items. For instance this week they had the big boxes of Pumpkin Spice Cheerios dated August 2019 for only $1 that were over $3 everywhere else.

Manager of my local store told me that they are able to provide good quality of inventory at such a low price because they have tremendous purchasing power to make great deals with their suppliers due to high volume. If they changed their pricing and/or made sales more complicated they would lose sales and not be able to operate at such as low cost administratively.