Dollar Tree is raising its prices and taking the decision to bump the cost of most of its products from $1 to $1.25.
Dollar Tree, known for its ‘Everything’s $1’ slogan announced the plans to raise prices on Tuesday. The discount retailer sells everything from household items to Christmas decorations and has long been a source of smart hacks and budget living room ideas. We're still obsessed with this DIY Christmas wreath made using a Dollar Tree pizza pan.
Dollar Tree claims that the changes will help it continue to provide great deals and a wider range of products to its customers. Dollar tree stated in its third-quarter press release that ‘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.’
It added that ‘this decision is permanent and is not a reaction to short-term or transitory market conditions.’
When will Dollar tree be raising its prices?
The company said that it plans to introduce the new price point to more than 2,000 stores in December. The goal is to roll it out to the full 8,000 Dollar Tree stores by the end of the first fiscal quarter in 2022.
Dollar Tree has said the reaction to the new price points tests has been relatively positive. A press release stated that 91 percent of those surveyed said they would continue to shop at Dollar Tree with the same or increased frequency.
‘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,’ stated Michael Witynski, President and Chief Executive Officer.
‘Accordingly, we have begun rolling out the $1.25 price point at all Dollar Tree stores nationwide.
‘I am very proud of our team’s efforts – especially those in our stores and distribution centers – to serve our customers by delivering incredible value on everyday products.’ he added.
Unsurprisingly, social media was not impressed with the price hike with the announcement quickly becoming a series of memes. Twitter users were commenting ‘It’s going to be called Two Dollar tree before we know it,’ and ‘Christmas is canceled!’.
The FT reported that Dollar Tree isn’t alone in raising its prices, October saw consumer prices rise by 6.2 percent the fast rate in three decades. This is because many retailers have been forced to pass increasing costs of manufacturing and shipping goods onto customers.
Fortunately, the Black Friday home deals have helped offer some respite for interiors-obsessed Christmas shoppers from rising prices.
Despite most items increasing to $1.25, some products will retain their $1 price tag. This isn’t the end of Dollar stores just yet.