CHESAPEAKE, Va. — Despite its name, Dollar Tree is hiking up its prices past $1 for a majority of the products it sells.
The company announced in its quarterly report Tuesday that it has begun rolling out $1.25 prices at all Dollar Tree stores nationwide.
Dollar Tree says its prices will be raised by the end of the first fiscal quarter of 2022, which is at the end of March.
The business tested out the new prices and says it “demonstrated broad consumer acceptance” and “excitement about the additional offering.”
The change comes as retailers struggle to offer low-cost items amid inflation, but Dollar Tree insists its price hike isn’t in reaction to that.
“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,” wrote the company. “However, as detailed in its September announcement, the company 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. This decision is permanent and is not a reaction to short-term or transitory market conditions.”
Dollar Tree says the new $1.25 prices will enhance the company’s ability to expand its offerings, introduce new products and sizes, and provide families with more of their daily essentials.
Additionally, the company says the new pricing strategy enables it to reintroduce many customer favorites and key traffic-driving products that were previously discontinued due to the constraints of the $1.00 price point.