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For the first time in more than three decades, Dollar Tree announced that it will be increasing the prices for most of its items up to $1.25 as the country contends with surging inflation rates.
In recent years, dollar stores have been veering away from that moniker, with many upping prices to as much as $3 or $5 for some items.
The new prices are expected to be rolled out to each of the company's 8,000 stores by early 2022 after the company tested higher-priced items for months, to which officials said there was a “positive customer reaction,” after attempting to raise prices to $1.25 or $1.50.
“(Dollar Tree) believes this is the appropriate time to shift away from the constraints of the $1.00 price point in order to continue offering extreme value to customers,” the company said in a statement.
According to the company, by sticking with the $1 per-item concept, the chain had to stop selling certain sizes and products, some of which may now be heading back to store shelves.
“We experienced a strong finish to the quarter, as shoppers are increasingly focused on value in this inflationary environment,” Michael Witynski, Dollar Tree President and CEO said in a statement.
“Our Dollar Tree pricing tests have demonstrated broad consumer acceptance of the new price point and excitement about the additional offerings and extreme value we will be able to provide.”
“(This decision was) not a reaction to short-term or transitory market conditions,” the statement said. However, Witynski added that "the additional price point (affords Dollar Tree) greater flexibility to manage the overall business, especially in a volatile, inflationary environment.
“Customers believe that at $1.25, it’s still going to be an undeniable value because of what they’re seeing out in the marketplace, and they know that Dollar Tree hasn’t raised its price in 35 years, so they’re giving us credit.”
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