Shoppers at Dollar Tree will start paying top dollar for its products.
The retail chain revealed in a press release on Tuesday it will soon permanently increase the price of its products to $1.25. The company assured that the change is not a reaction to inflation, instead saying the new pricing strategy will allow stores to carry products previously discontinued due to the devaluing of the U.S. dollar.
“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, the chain’s president and CEO. “Accordingly, we have begun rolling out the $1.25 price point at all Dollar Tree stores nationwide.”
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The chain first tested the increased price at select Dollar Tree Plus stores in September. Due to positive customer feedback and store performance during the initial testing phase, the chain has since introduced the initiative in nearly 200 additional legacy Dollar Tree stores.
Going forward, Dollar Tree plans to introduce the new price point in more than 2,000 additional legacy Dollar Tree stores in December and complete the rollout to all stores by the end of its first fiscal quarter of 2022, in late April.
While the chain said the price increase is not a response to inflation, not everyone is convinced.
“In case you still don’t believe inflation fears are real: After offering all goods at $1 for the last 35 years, Dollar Tree says they are permanently changing their pricing model so that everything will now be $1.25 or less,” Joe Pompliano, founder of Huddle Up, wrote. “You can’t make this stuff up.”
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The end of Dollar Tree’s $1 pricing marks a turning point for the company. For 35 years, it sold products under its cheap pricing. The company’s shift in its pricing plan will allow it “to continue offering extreme value to customers.”
