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Dollar Tree raising prices to $1.25 per item


Dollar Tree announced it has started rolling out a price increase to $1.25 for many items in stores. The change is a sign of the pressures low-cost retailers face holding down prices during a period of rising inflation.

“Lifting the one-dollar constraint represents a monumental step for our organization, and we are enthusiastic about the opportunity to meaningfully improve our shoppers’ experience and unlock value for our stakeholders,” Dollar Tree president and CEO Michael Witynski said in a statement.

The company’s stock rose 9.2% on Tuesday following the announcement, which was paired with the company’s quarterly earnings. Dollar Tree has sold products at $1 for 35 years and was the last of the major dollar store chains to actually be a dollar store.

The increase in prices “will enhance the company’s ability to materially expand its offerings, introduce new products and sizes, and provide families with more of their daily essentials,” according to the statement.

In September, Dollar Tree started testing the increased prices in select locations. It also said it would add $3 and $5 items to more stores, expanding on a prior strategy to offer these prices at select locations.

“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,” Witynski said.

Customers of the dollar store franchise shared reactions on social media saying the store needs to change its name.

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TAYLOR KNIGHT:

THE DOLLAR TREE IS NO LONGER SELLING ITEMS FOR A DOLLAR. THEY HIKED UP THE PRICES BY TWENTY FIVE PERCENT – BRINGING ITEMS TO ONE DOLLAR AND TWENTY FIVE CENTS.

SOME MAY SAY THIS IS NO BIG DEAL BUT – THE FRANCHISE IS KNOWN FOR THEIR ONE DOLLAR ITEMS – WHERE YOU CAN PICK UP A HANDFUL OF GOODS AND  SPEND LESS THAN TEN DOLLARS.

ONE LOYAL CUSTOMER SAYS DOLLAR TREE NEEDS TO BE CHANGED TO THE DOLLAR PLUS TREE.

THE BIG NEWS COMES AS THE COMPANY STRUGGLES TO MAINTAIN LOW PRICES WITH RISING COSTS. 

HOWEVER, THE NEW PRICES WON’T TAKE EFFECT UNTIL 2022.

THE COMPANY SAYS TWENTY FIVE CENT SHIFT WILL ALLOW THE STORE TO ADD NEW PRODUCTS THAT WEREN’T PREVIOUSLY AVAILABLE. 

ONE CUSTOMER BELIEVES THIS TRANSITION WILL ALLOW THE STORE TO GET BETTER QUALITY ITEMS. 

STILL SELLING THINGS FOR JUST A BUCK IS A BUSINESS MODEL THAT GOES BACK 35 YEARS, SO THE CHANGE HAS BEEN A RUDE AWAKENING FOR LOYAL CUSTOMERS.

ONE TWITTER USER FEELS LIKE SHE WOKE UP TO A NEW WORLD AFTER HEARING THE NEW PRICE FOR ITEMS. 

ANOTHER USER SAID RIP DOLLAR TREE – JOINING THE OTHER NOSTALGIC COMPANIES THAT WENT DOWN. 

DO YOU THINK THIS NEW PRICE WILL DRIVE CUSTOMERS AWAY FROM DOLLAR TREES? 

LET US KNOW IN THE COMMENTS BELOW.