Dollar Tree, which has priced its products at $1.00 for 35 years, announced Tuesday that it will soon increase its price point to $1.25 nationwide. Some customers will see prices increase in December, and all stores will implement the new initiative by the end of March 2022, the company said.
"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's President and CEO Michael Witynski said in a statement. "Guided by Dollar Tree's same founding principles, we will be relentless in our commitment to offer our customers the best value possible."
The 25 cent permanent increase will allow Dollar Tree to "materially expand its offerings, introduce new products and sizes and provide families with more of their daily essentials," the retailer said.
Dollar Tree said it will also reintroduce some "customer favorites" that were previously discontinued due to the $1.00 price point constraint. The change will also allow for employee wage increases, the store said.
Dollar Tree said it has planned the expansion of its price increase initiative since the late summer and that customer feedback has been "overwhelmingly positive."
"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.
Last month, consumer prices surged 6.2% — the largest monthly increase since 1990, according to the.
for more features.