Most things at The Dollar Tree will now cost $1.25

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Dollar Tree will raise prices on most of its products by $1 to $1.25 by the end of April, the company said. announced on Tuesday,

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why it matters: Dollar Tree, which has sold products at $1 for 35 years, was one of the major US dollar store chains to maintain its $1 price tag. The change is a reflection of pressure on low-cost retailers amid rising inflation. CNN Note,

  • For decades, Dollar Tree has seen some communities rely on cheaply-sourced goods—and rock-bottom costs to store them—to deliver a $1 price tag, writes Nerdshala’ Courteney Brown.

description: The company said keeping prices at $1 forced Dollar Tree to stop selling some of its customers’ favorites.

  • The $1.25 price point will enable Dollar Tree to “return to its historical gross margin limit by reducing historically high business cost growth, including freight and delivery costs, as well as higher operating costs, such as salary increases.”
  • The company said that 91% of shoppers surveyed during the initial testing phase indicated that they would purchase on Dollar Tree with equal or increased frequency.
  • The decision is permanent and not a “response to short-term or temporary market conditions”.

What are they saying: “Removing the one dollar barrier is an important step for our organization and we are looking forward to opportunities to meaningfully improve our buyer experience and unlock value for our stakeholders,” said Michael Wittensky, President and Chief Executive Officer. Excited about it.”


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