Today in Retail: Dollar Tree Raises Prices; Walmart+ Struggles to Up Paid Members

In today’s top retail news, Dollar Tree is permanently raising its prices to $1.25, while Best Buy is counting on healthcare technology and new store formats to help pave its future. Also, Walmart is struggling to grow the membership base of Walmart+, and Klarna is bringing its Pay Now option to its U.S. payment offerings.

Dollar Tree Breaks the Buck With Expanded $1.25 Pricing Policy

Discount retailer Dollar Tree said most of its merchandise will be sold for more than $1 by the end of April, a shift away from the approach it has relied on for more than three decades. The decision to raise prices to $1.25, which the retailer said in a statement is permanent and “not a reaction to short-term or transitory market conditions,” follows tests that Dollar Tree did earlier this year on some items in select stores.

Best Buy Pins Future Sales On HealthTech, Virtual Stores

Small-format locations, outlets, virtual stores and an increased presence in the healthcare category are among the initiatives that Best Buy executives say will carry the electronics retailer into the future and help connect with consumers. In the third quarter, comparable sales increased 2% on top of the nearly 23% growth over the same period last year, with revenue reaching $11.9 billion, approximately the same level as last year.

Walmart’s Loyalty Program Walmart+ Struggles to Grow Paid Membership

After over a year of offering consumers free delivery, discounted prescription drugs and other benefits, the growth of Walmart+ remains in neutral, with nearly 1 in 10 consumers who have access to the service getting it through a free trial. Amazon Prime, on the other hand, has nearly three-quarters of its subscriber base paying for their own subscriptions and only 3% using free trials.

Klarna Introduces Pay Now and Klarna Card in US

Global retail bank and buy now pay later (BNPL) specialist Klarna is introducing its Pay Now option to its suite of U.S. payment services, along with the upcoming launch of its Klarna Card to the U.S. market, which brings its interest-free Pay in 4 services to a physical card format. Best known for its Pay in 4 services in the U.S., Klarna also offers several payments and shopping solutions worldwide.