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Dollar Tree Inc. will sell a majority of its products for more than $1, edging away from the approach that gave the discount chain its name.
After 35 years of selling goods for a buck, Dollar Tree is boosting its standard price point to $1.25 by the end of April, the company said in a statement Tuesday. While the decision is “not a reaction to short-term or transitory market conditions,” Dollar Tree acknowledged the inflationary environment and said the price boost will help mitigate historically high costs, including freight and distribution expenses, as well as wage increases.
“Lifting the one-dollar constraint represents a monumental step for our organization,” CEO Michael Witynski said in the statement. The move will allow Dollar Tree to expand its product assortment and reintroduce some items that were pulled due to the $1 constraint.
The move signals the end of an era for Dollar Tree, which has long based its business on the price point, as inflation pushes up the cost of many goods.
The company recently rolled out the higher price in select stores, and the tests “have demonstrated broad consumer acceptance of the new price point,” Witynski said. Dollar Tree plans to bring it to more than 2,000 additional stores in December and complete the rollout by the end of the first quarter of fiscal 2022.
The shares jumped 5.9% in morning trading after company reported results that slightly beat Wall Street’s expectations. Dollar Tree also narrowed its earnings forecast for the year, to a range of $5.48 to $5.58 a share, compared with a prior outlook of $5.40 to $5.60.
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Thanks a bunch, Joe Biden & Acolytes….keep printing that money and soon, we’ll be using dollar bills for toilet paper because that’s all they’ll be worth. Friggin’ Democrats!
I’m sorry this hurts you because I’m sure Dollar Tree is the store you shop most frequently at. You really should be educated enough to realize one American political party can’t cause global inflation, and that this is the result of the global supply chain and pandemic. I’m sorry our nation’s schools failed you.
Lol Wesley. I missed on the opportunity to (sarcastically) post that before some True Believer like Bob.
I suppose you stIll want to shop at Murphy’s 5 and Dime?
So, now it’ll be “Dollar and a Quarter Tree.” 🙂
It has a certain ring to it.
The pandering party of inflation and reckless spending. Elections have consequences. Expect a great business climate to come in 12-24 months.
You are speaking to the party that almost doubled our national debt in 3.5 years?
Have you never taken an Econ 101 course? Go read a book, then come back and admit your incorrect understanding of the global economy
Today’s headline: “Initial jobless claims totaled 199,000 last week, the lowest total since November 1969”
Yes. Indeed. And this is a consequence of the 2020 election for president and congress.