Dollar Tree, the national chain known for offering all products to customers at the price of $1.00, is permanently increasing prices for all of its items to $1.25 in response to “historically-high merchandise cost increases.” The change will take effect at all stores by the the end of the first fiscal quarter of 2022.
“For 35 years, Dollar Tree 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,” the company said in a press release. “However, as detailed in its September announcement, the Company believes this is the appropriate time to shift away from the constraints of the $1.00 price point in order to continue offering extreme value to customers. This decision is permanent and is not a reaction to short-term or transitory market conditions.”
The statements notes “The new price point will enable Dollar Tree to return to its historical gross margin range by mitigating historically-high merchandise cost increases, including freight and distribution costs, as well as higher operating costs, such as wage increases.”
“The Company’s leadership team has been planning for the expansion of the initiative since late summer 2021,” the press release continues. “In September, the Company announced its plan to add additional price points above $1.00 to all Dollar Tree Plus stores and – on a test-and-learn basis – to selected legacy Dollar Tree stores. The Company was very encouraged by the positive customer feedback and store performance during the initial testing phase, and has since introduced the initiative in nearly 200 additional legacy Dollar Tree stores.”
The Biden regime has repeatedly denied that its unprecedented spending are contributing in any way to the surge in prices for consumer goods since the January inauguration.