Business Buzz
By Rich Baehrle
Northfield is now on the retail map, welcoming a brand new, approximately 10,000-square-foot Dollar Tree.
You may be asking yourself why this news is worthy of reporting. Well, the answer is that Dollar Tree, Inc., which is headquartered in Chesapeake, Va., recently announced the closing of approximately 1,000 stores out of its approximately 16,000 locations.
The company acquired Family Dollar in 2015 for $8 billion in a bidding war with Dollar General. However, the merger has not gone as expected with a shake-up in the space.
In a time of persistent inflation, it has become more and more challenging for the company to maintain the dollar price point. In fact in 2021 the chain announced an increase in the famous $1 price to $1.25. It may not seem like a lot, but it is a 25 percent increase.
In a risky move to address consumer resistance to the price increases, earlier this year the company made the decision to consider a rollback of 400 of its 8,000 items.
It is reported that Dollar Tree lost $1.5 billion in the last quarter of 2023. However, the forecast is looking a little better with projected 6.3 percent sales increase to $31 billion in 2024.
The model has changed in many ways to expand its product lines to include items such a greater variety of food items, and items that are in the $5 range. It gives the consumer a choice beyond the limited dollar range.
The bottom line is that the new Dollar Tree store in Northfield is filling a niche. Northfield residents and beyond are glad they can now purchase reasonably priced items in town rather than traveling to Egg Harbor Township, Somers Point and other surrounding areas.
It will be a great complement to longtime Northfield retailer Tilton Beauty Supply, Mike’s Pasta House, Pinky Nails, WOLF Fitness Center, NovaCare, Rock Bottom Vitamins and others.
Considering the many retail closures of such stores as Walgreens, Macy’s, Rite Aid and many more, it’s nice to be chosen as a rare opportunity for expansion.
Remember to shop locally and support local businesses and services, especially small businesses.
Rich Baehrle, of Berkshire Hathaway Fox and Roach, can be reached at 609-266-6680
or 609-641-0011. Email richardbaehrle@gmail.com or see www.getrichinrealestateSJ.com
