High Egg Prices Cause Dollar Tree To Pause Sales

Dollar Tree may be a popular destination for Easter treats and baskets, but one item shoppers won't find there is eggs — whether for cooking or dying in vibrant colors. While Dollar Tree, which primarily carries items priced at $1.25 or less, has dramatically expanded its grocery offerings to help consumers cope with sky-high food prices, the discount chain is facing the very same sticker shock other retailers have when it comes to wholesale egg prices.

Egg prices have been on a rollercoaster over the last year, peaking at $5.43 in December 2022. Though prices have dropped by an encouraging $2.61 per dozen in the first quarter of 2023, the USDA points out that Easter presents a challenge for both retailers and wholesalers. This challenge complicates decisions about how to purchase, promote, and price a perishable product which will be at peak demand ahead of the holiday which this year falls on April 9. According to Reuters, as of March 14, 2023, Dollar Tree is out of the egg business, at least for now.

A spokesperson for Dollar Tree confirmed with Reuters that the company, which operates about 8,000 stores in the U.S. and Canada, would stop carrying eggs and doesn't plan to bring them back until the fall. Because of the chain's strong association with fixed prices — even for their grocery offerings, which are typically priced at $3 and $5 — the company must not feel confident they can appropriately price the eggs and turn a profit.  

Winsight Grocery Business notes that the grocery departments in Dollar Tree's stores have expanded significantly, a strategic move that has paid off. The discount chain has expanded its grocery departments significantly, offering frozen foods at prices higher than their standard $1.25. And despite a decrease in the number of shoppers, the retailer has shown an overall increase in sales. Dollar Tree attributes this to the convenience and value associated with its expanded grocery business.

According to Reuters, Dollar Tree also operates 8,200 Family Dollar stores. This sister chain offers various products ranging from $1 to $10, and a spokesman told the outlet these locations would continue to carry eggs. While Dollar Tree shoppers won't be able to put eggs in their baskets (at least until the fall), declining egg prices are certainly good news for everyone, especially for those of us who enjoy coloring Easter eggs!