Dollar Tree announced Tuesday that the company will increase the price of most of its products to $1.25 by the end of the first quarter of 2022, NBC News reports.
Vince Staples weighed in Dollar Tree’s decision, and didn’t seem happy with how the company chose to go “against the grain.”
According to CNN Business, Dollar Tree stayed true to its $1 price point for 35 years, but in September, the company revealed plans to convert a number of locations into Dollar Tree Plus, making certain products available for $3 and $5. The “overwhelmingly positive” response to the experiment compelled them to aim for 500 Dollar Tree Plus stores by the end of 2021, and at least 5,000 locations by 2024.
“Our Dollar Tree pricing tests have demonstrated broad consumer acceptance of the new price point and excitement about the additional offerings and extreme value we will be able to provide,” Dollar Tree president and CEO Michael Witynski said in a statement. “Accordingly, we have begun rolling out the $1.25 price point at all Dollar Tree stores nationwide.”
Dollar Tree said the price hike will allow the company to broaden its selection since many items weren’t made available because of the $1 base price. The move will also help alleviate freight and distribution costs, as well as address wage increases. “This is the appropriate time to shift away from the constraints of the $1 price point,” Witynski said.
