Faced with the rising cost of goods and freight, discount retail chain Dollar Tree says it will be raising its prices to $1.25 for the majority of its products
Dollar Tree, a favorite shopping destination for bargain hunters, will raise its baseline price for items from its namesake dollar to $1.25, the company announced this week. It marks the first price hike in 35 years.
Dollar Tree stores are sprinkled throughout Coachella Valley in Palm Springs, Cathedral City, Palm Desert and Coachella.
President and CEO Michael Witynski blamed inflation but insisted that customers will roll with the price-tag punches, according to NBC News.
“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 in a statement detailing third-quarter company earnings. “Accordingly, we have begun rolling out the $1.25 price point at all Dollar Tree stores nationwide.”
While some items cost more than $1, Dollar Tree is widely known for holding nearly all its goods to the $1-per-unit price point,
Dollar Tree was one of the last true “dollar stores” after most of its competition had moved away from that price point.
CEO Michael Witynski said he expects the Dollar Tree customers to remain loyal.
Its shoppers “believe that at $1.25, it’s still going to be an undeniable value because of what they’re seeing out in the marketplace,” Witynski said on a call with industry analysts. “And they know that Dollar Tree hasn’t raised its price in 35 years, so they’re giving us credit.”
The company, which is based in Chesapeake, Virginia, said in September it was testing the higher prices at select stores. On Tuesday, it said it will introduce the new price point in more than 2,000 additional stores in December and complete the rollout to all its stores by early next year. The company has about 8,000 stores.
- Dollar Tree: Shutterstock