By Katherine Hamilton
Shares of discount retailers rose after Trump announced a pause on tariffs, soothing fears the companies would have to raise prices amid falling demand.
Five Below's stock climbed 11% to $62 onWednesday afternoon after hitting a 52-week low on Friday. Dollar Tree gained 2.9% to $71.71 and Ollie's Bargain Outlet shares were up 8% to $111.78 respectively.
The companies are heavily reliant on trade and some have already raised prices in recent years to deal with inflation. Dollar Tree, once known as a dollar store, raised prices to $1.25 and is planning to bump more items to $1.50.
Their shoppers tend to have lower income, so keeping prices down is vital to their core customer base. Tariffs were fueling fears of a recession, which was expected to drive down discretionary spending.
The threat isn't gone. Dollar Tree and Five Below both source much of their merchandise from China, where tariffs are now 125% and won't be paused, Trump said Wednesday.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
April 09, 2025 14:29 ET (18:29 GMT)
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