Dollar Tree increasing price point to $1.25 nationwide
(Gray News) - Discount retailer Dollar Tree announced Tuesday it will be raising its price point to $1.25 at all of its stores by next year.
The company said the decision is permanent and will allow more items to be sold at its locations.
Dollar Tree announced the price hike in its third-quarter earnings report, stating the $1 price point was constraining the number of offerings it could provide at its stores.
“The $1.25 price point, which will apply to a majority of Dollar Tree’s assortment, 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,” the company stated in its earnings report.
President and CEO Michael Witynski said the company’s pricing tests showed consumers broadly accepted the $1.25 offerings.
The company revealed in a survey that 91% of customers would continue to shop at Dollar Tree with the same or increased frequency even with the new price point.
“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,” Witynski said.
The new prices will also allow the company to combat what it calls “historically-high merchandise cost increases, including freight and distribution costs, as well as higher operating costs, such as wage increases.”
Dollar Tree will introduce the new price point in 2,000 locations in December, and the rollout will be complete by the end of the first fiscal quarter in 2022.
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