Dollar Tree Raising Prices 25% – Everything Will Now Cost $1.25
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It’s the end of an era at Dollar Tree.
With inflation soaring all around us, everything costs more these days, and even Dollar Tree has been affected by this trend. One of the country’s last true dollar stores, Dollar Tree has been one of the remaining stores where you could walk inside and know that everything you see costs just $1. But after 35 years, all that’s all about to change.
Today, the company announced that it plans to raise prices from $1 to $1.25 on the majority of its products by early 2022. This shift reflects the impossibility of discount retailers keeping prices down while inflation rates continue to rise.
Dollar Tree explained in a quarterly earnings statement that selling everything for just a buck forced them to stop selling some customer favorites. Raising prices will hopefully give the retailer more flexibility to bring back those items, expand its selection, and introduce new products and sizes to its shelves.
The price hike is also expected to help the company deal with historically high merchandise cost increases and pay raises for its employees. CEO Michael Witynski said,
“For 35 years, Dollar Tree has managed through inflationary periods to maintain the everything-for-one-dollar philosophy that distinguished Dollar Tree and made it one of the most successful retail concepts for three decades…. 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. This decision is permanent.”
This announcement comes on the heels of September’s news that Dollar Tree would begin selling items for $1.25 and $1.50 at select stores for the first time.