December 8, 2021

Dollar Tree stores to raise prices on most items to $1.25

NEW YORK — Confronted with the rising price of products and freight, low cost retail chain Dollar Tree mentioned Tuesday will probably be elevating its prices to $1.25 for almost all of its merchandise.

Dollar Tree mentioned the rationale for elevating its prices to $1.25 was not due to “short-term or transitory market conditions” and mentioned the value will increase had been everlasting. The upper prices can even enable the corporate to address excessive merchandise price will increase in addition to increased working prices, corresponding to wages, it mentioned.

“(Dollar Tree) 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,” the corporate mentioned in an announcement.

Dollar Tree was one of many final true “dollar stores” after most of its competitors had moved away from that worth level.

The corporate, which relies in Chesapeake, Virginia, mentioned in September it was testing the upper prices at choose stores. On Tuesday, it mentioned it’ll introduce the brand new worth level in additional than 2,000 extra Dollar Tree stores in December and full the rollout to all its stores by early subsequent yr. The corporate has about 8,000 Dollar Tree stores.

CEO Michael Witynski mentioned he expects the Dollar Tree clients to stay loyal.

Its buyers “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 mentioned on a name with trade analysts. “And they know that Dollar Tree hasn’t raised its price in 35 years, so they’re giving us credit.”

The corporate’s inventory rose 9.2% on Tuesday following the announcement, which was paired with the corporate’s quarterly earnings. Analysts at Citigroup known as the earnings “disappointing” however mentioned traders are wanting previous earnings to the corporate lastly elevating prices.