- by cnn
- 05 Jun 2023
Dollar Tree, a popular store among bargain shoppers in the US, has a small name problem in these inflationary times.
It plans to raise its prices from a dollar for typical items to $1.25, the company announced on Tuesday.
The retailer will introduce the new price point in more than 2,000 stores by December and complete the rollout across all of its 8,000 stores by the first quarter of 2022.
For 35 years, the company has managed to hold down prices through inflationary periods.
Dollar Tree is making its pricing increase amid the trend of rising inflation in a growing US economy, which in recent months has increasingly affected low-cost retailers that are struggling to maintain low prices.
But in a statement, Dollar Tree said: "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. This decision is permanent and is not a reaction to short-term or transitory market conditions."
Michael Witynski, the company's president and CEO, added: "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 provide."
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