Dollar Tree Raises Base Price To $ 1.25 Due To Inflation
Dollar Tree said on Tuesday that the company would increase the price of most of its products to $ 1.25 by the end of the first quarter of 2022, NBC News reports.
Vince Staples weighed in on Dollar Tree’s decision and did not appear happy with the way the company chose to go “against the grain.”
According to To CNN Business, Dollar Tree has stuck with its $ 1 price tag for 35 years, but in September the company revealed plans to convert a number of locations to Dollar Tree Plus, making some products available for $ 3 and $ 5. The “overwhelmingly positive” response to the experience forced them to target 500 Dollar Tree Plus stores by the end of 2021 and at least 5,000 locations by 2024.
“Our Dollar Tree pricing tests have demonstrated broad consumer acceptance of the new price point and enthusiasm for the additional offerings and extreme value that we will be able to deliver,” said the president and chief executive officer of Dollar Tree management Michael Witynski in a statement. “As a result, we have started rolling out the price of $ 1.25 to all Dollar Tree stores across the country. ”
Dollar Tree said the price hike would allow the company to expand its selection as many items were unavailable due to the base price of $ 1. This decision will also help reduce transport and distribution costs, as well as deal with wage increases. “Now is a good time to step away from the constraints of the $ 1 price,” Witynski said.