Dollar Tree (NASDAQ: DLTR) has decided to discard its “Everything’s $1” motto that is often displayed in stores. The company revealed it would be permanently raising prices by 25%, shifting to a USD1.25 price point, for the majority of its products.
The chain has already implemented the change in several of its stores and will be set forth in all of its 8,000 US stores by the beginning of 2022. Dollar tree has begun to display signs of the news at stores, making customers aware of the change. Moreover, the company will be training staff to deal with customers that are unaware of the novelty.
“The company believes this is the appropriate time to shift away from the constraints of the $1 price point in order to continue offering extreme value to customers,” Dollar Tree said in a statement. “This decision is permanent and is not a reaction to short-term or transitory market conditions.”
According to the company, the price increase will help it cover rising operating costs, including wages.
The new pricing has been tested in various locations since 2022. CEO Michael Witynski is optimistic regarding the change.
“The additional price point at Dollar Tree affords us greater flexibility to manage the overall business, especially in a volatile, inflationary environment,” Witynski said. “We believe small-box, value retail is more important than any other retail sector to millions of households. Lifting the $1 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.”