Dollar Tree announced it has started rolling out a price increase to $1.25 for many items in stores. The change is a sign of the pressures low-cost retailers face holding down prices during a period of rising inflation.
“Lifting the one-dollar constraint represents a monumental step for our organization, and we are enthusiastic about the opportunity to meaningfully improve our shoppers’ experience and unlock value for our stakeholders,” Dollar Tree president and CEO Michael Witynski said in a statement.
The increase in prices “will enhance the company’s ability to materially expand its offerings, introduce new products and sizes, and provide families with more of their daily essentials,” according to the statement.
In September, Dollar Tree started testing the increased prices in select locations. It also said it would add $3 and $5 items to more stores, expanding on a prior strategy to offer these prices at select locations.
“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,” Witynski said.
Customers of the dollar store franchise shared reactions on social media saying the store needs to change its name.
