Dollar Tree to raise prices to $1.25

Dollar Tree is raising prices for most items to $1.25 by April of 2022.

For 35 years, the bargain giant has managed through inflationary periods to maintain the everything-for-one-dollar philosophy that distinguished Dollar Tree and made it one of the most successful retail concepts for three decades.

Dollar Tree says that moving away from the $1 price point will allow the stores to expand their offerings by introducing new products as well as bring back many customer favorites that were discontinued due to pricing constraints.

“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,” President and Chief Executive Officer Michael Witynski said in a statement. “Guided by Dollar Tree’s same founding principles, we will be relentless in our commitment to offer our customers the best value possible.”

Internal customer surveys around the price increase have been overwhelmingly positive.  Dollar Tree reported that 91% of surveyed customers said that they would continue to shop Dollar Tree with the same or increased frequency.

Dollar Tree plans to roll out the new pricing structure in over 2,000 stores in December and complete the rollout to all locations by the end of the first quarter of 2022.