Dollar Tree raises prices from $1 to $1.25 for most items

The popular Dollar Tree discount stores said on Tuesday that the company would raise prices from $1 U.S. dollar to $1.25 dollars on the majority of its products by the first quarter of 2022 amid broad inflation pressures.

The popular Dollar Tree discount stores, which have held the price of items sold to $1 for 35 years, have announced it will raise most prices by 25% or more in 2022.

In a statement released Tuesday, Dollar Tree said the decision is not “a reaction to short-term or transitory market conditions.”

“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,” said Dollar Tree president and CEO Michael Witynski in a statement.

The company said the higher price point is a permanent move, and not the result of “short-term or transitory market conditions,” according to MarketWatch.

Rather, the company said it was increasingly hindered by selling items for only $1, and it was forced to stop selling well-liked items.

The announcement came after a testing procedure that started this past summer and was introduced in September as part of a company transformation plan.

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.

Dollar Tree said increasing prices will offer the company more flexibility to reestablish those items, offer a wider range of merchandise, and bring new products and sizes to its stores.

The company has more than 15,800 Dollar Tree, Family Dollar, and Dollar Tree Canada stores across 48 states and five Canadian provinces.

Dollar Tree said the price change will roll out to all stores by the end of the first fiscal quarter of 2022.

(With inputs from agencies)

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