Dollar Tree breaks the 1 dollar barrier and will raise prices

Dollar Tree makes it official; items will now cost $1.25. Dollar Tree says that the increase will be permanent. The retail chain will rai...

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  • Dollar Tree makes it official; items will now cost $1.25.
  • Dollar Tree says that the increase will be permanent.
  • The retail chain will raise prices in all stores by the end of the first quarter of 2022.

Faced with the increase in the cost of products and transportation, the famous discount store chain Dollar Tree announced on Tuesday that it will raise prices to $1.25 on most of its items, according to the Associated Press.

Dollar Tree reported that it is not raising its prices to $1.25 due to “short-term or transitory market conditions” and specified that the increase is permanent. Higher prices will also allow the company to cope with increased merchandise costs, as well as expenses with higher operating costs, such as wages, he said.

When will the Dollar Tree increase take effect?

increase dollar tree
Photo: Twitter

“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 company said. Dollar Tree was one of the last true “dollar stores” after most of its competitors had moved away from that price level.

The company based in Chesapeake, Virginia, reported in September that it was testing the price hike at some stores. On Tuesday, it said it will introduce the new price at more than 2,000 new Dollar Tree stores beginning in December and complete the rollout to all its stores by early next year.

What are people saying about this increase?

increase dollar tree
Photo: Twitter

The company has about 8,000 Dollar Tree stores. CEO Michael Witynski said he expects Dollar Tree customers to remain 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 said in a call with industry analysts.

“And they know that Dollar Tree hasn’t raised its price in 35 years, so they’re giving us credit.” The company’s shares rose 9.2% on Tuesday after the announcement, which coincided with the company’s quarterly results.

The post Dollar Tree breaks 1 dollar barrier and will raise prices appeared first on MundoHispanico.

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