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Inflation vs Dollar Tree

(Begin shitpost)

*clears throat*

Alright so with inflation going up at rates not seen in decades, the dollar just got more worthless than your wife’s subscription to peloton.

Dolllar tree is STILL committed to selling their products for $1. This means the solid numbers they’ve been posting for a while must slow down – at a rate of inflation.

I don’t think their board has thought of this

phu(k)boi Jerome most undoubtedly will rise rates – HOWEVER this dude is STILL keeping rates low – just like dollar tree commited to $1.

Surely this is not priced in.

TLDR; Aug 27 puts on DLTR.

Forgot to add: to piggyback on former post about influencers – the same applies to strippers – which means less of them spending their singles at DLTR. Puts confirmed.

Edit: Did not realize there was such a strong dltr following. Y’all just got wrapped in a Neil trap

What do you think?

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11 Comments

  1. Yes, they adjust the size and quantity of their packages to maintain the dollar price point. To that point your analysis is erroneous.

    So, yes, their management team has thought of this. This is how they’ve maintained the dollar price point for ~3 decades. It’s not because inflation was 0 until now.

    Based on your analysis, no, their solid performance doesn’t have to slow down.

    Edit: you also know Dollar Tree owns Family Dollar, which is not tied to the $1 dollar price point – correct?

  2. The bigger issue is shipping containers. Tariffs aside, freight rates from China have gone from normal $3k a box to $15k a box and that’s if your able to keep your booking.

    This looks to be continued for the next year.

    Now for smaller less bulky items that fit $50k / $100k of merchandise it can be managed.
    But for something big and cheap like say a box of crayons that retails for $1, forget it. Paying $15k for a box that fits $20k of merchandise just doesn’t work.

  3. This is maybe one of the worst posts I’ve clicked on in WSB for a good while.

    It’s not funny and it’s a very bad take that shows almost no understanding of how Dollar Tree works.

    TLDR; Your puts will probably print because wtf do I know either.

  4. As in the past, products will be cheaper quality and sales will increase as people new to the poverty level search for ways to save a buck. I do think stock prices will dip as the market plays catch-up but I not bearish long term. NFA just my 2¢.

  5. In the long term inflation will destroy a dollar only model – that’s why there are no more dime stores, because to shrink a package down to only cost a dime there would be 3 pretzels inside.

    Eventually the dollar model won’t function but we’re not at that point. Even with package shrinking they went from having a 3 liter bottle of generic cola to 2.5 – 2.75 liter depending on the brand. There’s still mileage that can be gotten out of a buck.

  6. From what I’ve been reading, average inflation is up, but that’s mostly cause by used car sales and fuel. Those numbers are sky high right now.

    However, food, toys, and many other things are flat, slightly down, or barely up.

    So I don’t think the inflation we are seeing will affect dollar store, or at least the things they sell.

AstroFloki 🚀 💍 Fair Launch at 11:00 PM UTC 💵 Staking [0 day old] [0 market cap]

We are still bearish!