Dollar Tree can't afford to sell eggs anymore

REPORTER: IT’S REALLY A DOMINO EFFECT - IT’S COSTING FARMS LIKE THIS ONE MORE MONEY TO PRODUCE EGGS WHICH MEANS YOUR PAYING MORE AT THE STORE. OR EVEN AT THE RESTAURANT. FARMERS SAY THERE ARE SEVERAL REASONS FOR THE INCREASE. >> IT LOOKS LIKE YOU ARE PUTTING MONEY IN YOUR POCKET. REALISTICALLY AND HONESTLY NOT. YOU ARE JUST TRYING TO STAY AHEAD OF THE INCREASED COSTS. REPORTER: RON EICHNER IS THE OWNER OF EICHNER’S FARM MARKET A FOURTH GENERATION FAMILY FARM WHERE 3,000 CHICKENS LAY EGGS. AND RECENTLY HE’S HAD TO RAISE HIS EGG PRICES THREE TIMES. >> HAD TO TAKE THE PRICES UP 25% JUST IN THE LAST 4 MONTHS. LARGE FIVE DOLLARS A DOZEN. REPORTER: THAT’S ABOUT A DOLLAR MORE PER DOZEN IN FOUR MONTHS. EICHNER SAYS THE FEED COST FOR HIS FARM HAS JUMPED 36% IN THE LAST YEAR, HIS ELECTRIC BILL HAS GONE UP AND HE’S ALSO SEEING A PRICE INCREASE FOR EGG CARTONS. NOW COMBINE THAT WITH LABOR COSTS AND THE LINGERING BIRD FLU OUTBREAK AND YOU’RE GOING TO PAY MORE FOR YOUR EGGS. >> I’M KEEPING ALL THE HENS BUSY AND WE ARE SELLING ALL THE BIGS. REPORTER: LOCAL RESTAURANTS ARE ALSO FEELING THE PAIN. TOTIN’S DINER USED THOUSANDS OF EGGS EACH WEEK. >> LAST WEEK WAS $84 FOR 15,000. THIS PAST WEEK IT DROPPED TO -- 15,000, THIS PAST WEEK IT DROPPED TO 77. REPORTER: EXPERTS PREDICT THE PEAK HAS PASSED - BUT BUSINESSES SAY THEY STILL NEED MORE RELIEF. >> WITH EVAN GOING OUT -- WITH EVERYTHING GOING UP AND LABOR GOING UP IT IS A BIG PINCH. WE ARE ABSORBING IT AND HOPEFULLY WE CAN HAVE TO RAISE PRICES. >> HOPEFULLY THE PUBLIC UNDERSTANDS THERE IS A LOT OF DYNAMICS CAUSING THESE INCREASES. IT DOES NOT HELP OF THE INFLATIONARY PERIOD WE ARE IN. EVERYONE IS TRYING TO MICROMANAGE. LET’S NOT BEAT UP ON THE HEN. REPORTER: EICHNER DID SAY BECAUSE OF THE HIGH DEMAND FOR EGGS HE’S BEEN GETTING MORE CALLS. PEOPLE LOOKING FOR NEW EGG SUPPLIERS. REPORTING LIVE IN WEXFORD ASHLEY ZILKA PITTSBURGH’S

Eggs have gotten too expensive for Dollar Tree.Dollar Tree, which sells most products for $1.25 and a small selection of items for $3 or $5, will stop selling eggs at stores because the company can't make money offering them at flat prices.Egg prices have surged, fueled by short supply caused by the deadly avian flu, high production costs and egg producers increasing their own profits.Egg costs jumped 38% for producers annually in February and 55% for shoppers, although eggs are beginning to get cheaper. The average price for a dozen Grade A large eggs was $4.21 in February, according to data from the Bureau of Labor Statistics.Most retailers have raised egg prices on customers to adjust for higher costs, but Dollar Tree doesn't have as much flexibility to raise prices."Our primary price point at Dollar Tree is $1.25. The cost of eggs is currently very high," said company spokesperson Randy Guiler. Dollar Tree, which has around 9,000 US stores, will bring back eggs when "costs are more in line with historical levels."But that probably won't be in time for a key egg-purchasing holiday, Easter, which is April 9 this year.Reuters first reported that Dollar Tree would stop selling eggs. Family Dollar, owned by Dollar Tree, will continue selling eggs.Shoppers on tight budgets have increasingly turned to dollar stores for food.Dollar Tree, Family Dollar and Dollar General, the largest of the three chains, have spread in recent years and added more food basics, although fresh and healthy options are limited. Dollar stores are the fastest-growing food retailers in America, according to a study by Tufts University released this year.Dollar Tree used to sell cartons of eight or six eggs for $1. In 2021, Dollar Tree announced it would raise prices to $1.25 because selling everything for $1 was squeezing business.Dollar Tree also made the decision to pull eggs because it has a lean staffing model in stores, said David D'Arezzo, a former executive at Dollar General and other retailers who now works as an industry consultant. Workers changing price tags every week on eggs to account for wild swings in the market would be an extra strain on store operations, he said.The chain caters to low and middle-income customers and it doesn't want to offer eggs at sticker shock prices to hurt its price reputation with shoppers, D'Arezzo said.

Eggs have gotten too expensive for Dollar Tree.

Dollar Tree, which sells most products for $1.25 and a small selection of items for $3 or $5, will stop selling eggs at stores because the company can't make money offering them at flat prices.

Egg prices have surged, fueled by short supply caused by the deadly avian flu, high production costs and .

Egg costs jumped 38% for producers annually in February and 55% for shoppers, although eggs are beginning to get cheaper. The average price for a dozen Grade A large eggs was $4.21 in February, according to from the Bureau of Labor Statistics.

Most retailers have raised egg prices on customers to adjust for higher costs, but Dollar Tree doesn't have as much flexibility to raise prices.

"Our primary price point at Dollar Tree is $1.25. The cost of eggs is currently very high," said company spokesperson Randy Guiler. Dollar Tree, which has around 9,000 US stores, will bring back eggs when "costs are more in line with historical levels."

But that probably won't be in time for a key egg-purchasing holiday, Easter, which is April 9 this year.

first reported that Dollar Tree would stop selling eggs. Family Dollar, owned by Dollar Tree, will continue selling eggs.

Shoppers on tight budgets have increasingly turned to dollar stores for food.

Dollar Tree, Family Dollar and Dollar General, the largest of the three chains, have spread in recent years and added more food basics, although fresh and healthy options are limited. Dollar stores are the in America, according to a study by Tufts University released this year.

Dollar Tree used to sell cartons of eight or six eggs for $1. In 2021, Dollar Tree announced it would to $1.25 because selling everything for $1 was squeezing business.

Dollar Tree also made the decision to pull eggs because it has a lean staffing model in stores, said David D'Arezzo, a former executive at Dollar General and other retailers who now works as an industry consultant. Workers changing price tags every week on eggs to account for wild swings in the market would be an extra strain on store operations, he said.

The chain caters to low and middle-income customers and it doesn't want to offer eggs at sticker shock prices to hurt its price reputation with shoppers, D'Arezzo said.

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