Dollar Tree was one of the last discount stores to truly hit $ 1 prices after most of its competition started raising prices.
Photo: Mario Tama / .
Faced with the increase in the cost of products and their shipment to stores, Discount chain Dollar Tree announced Tuesday that it will increase its prices to $ 1.25 for most of its products..
Dollar Tree said the reason for raising its prices to $ 1.25 was not due to momentary or short-term market conditions, but rather because the price increases are permanent.
Higher prices will also allow the company to cope with high increases in merchandise costs, as well as higher operating costs, such as workers’ wages.
“Dollar Tree believes this is the appropriate time to move away from the $ 1 price restrictions to continue to offer extreme value to customers,” the company said in a statement, according to ABC.
Dollar Tree was one of the last discount stores to truly give $ 1 prices after most of its competition raised prices..
The Chesapeake, Virginia-based company said in September that it was putting higher prices on products in some of its stores on a trial basis.
This Tuesday, The chain announced that it will introduce the new price of $ 1.25 in more than 2,000 additional Dollar Tree stores in December. and will complete rollout in all of its stores early next year. The company has about 8,000 Dollar Tree stores.
Chief Executive Officer Michael Witynski said he hopes Dollar Tree customers will continue to visit its stores and that higher prices will not drive them away.
Witynski said customers will find the $ 1.25 products still priced well due to current market conditions. In addition, he commented that Dollar Tree hasn’t raised its price in 35 years.
The company’s shares rose 9.2% on Tuesday after the announcement.
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