Dollar Tree raises prices to $1.25 and they say it's not due to inflation

Posted 8 days ago

From WWW.MARKETWATCH.COM

Dollar Tree Inc. is raising prices for good, the company announced on Tuesday, moving its price point higher by a quarter from the eponymous dollar.

The company notes that it has managed to hold prices at $1 for 35 years, including during inflationary periods. This decision comes after a testing process that began this past summer, and was introduced in September as part of a company transformation plan.

Dollar Tree Inc. is raising prices for good, the company announced on Tuesday, moving its price point higher by a quarter from the eponymous dollar.

The company notes that it has managed to hold prices at $1 for 35 years, including during inflationary periods. This decision comes after a testing process that began this past summer, and was introduced in September as part of a company transformation plan.

Dollar Tree Inc. is raising prices for good, the company announced on Tuesday, moving its price point higher by a quarter from the eponymous dollar.

The company notes that it has managed to hold prices at $1 for 35 years, including during inflationary periods. This decision comes after a testing process that began this past summer, and was introduced in September as part of a company transformation plan.

Dollar Tree Inc. is raising prices for good, the company announced on Tuesday, moving its price point higher by a quarter from the eponymous dollar.

The company notes that it has managed to hold prices at $1 for 35 years, including during inflationary periods. This decision comes after a testing process that began this past summer, and was introduced in September as part of a company transformation plan.

Dollar Tree

DLTR

says the customer response to the higher prices has been positive. And when Dollar Tree talked about the higher prices during its last earnings announcement in September, investors responded happily as well.

“[Customers] have also indicated they are seeing price increases across the market and that Dollar Tree is still providing the products they need at an undeniable value,” Dollar Tree said in a statement.

Read: Macy’s new marketplace could bolster calls to separate its e-commerce business, one analyst says

The company said the higher price point is a permanent move, and not the result of “short-term or transitory market conditions.” Moreover, the $1.25 price point allows the company to offer a wider range of merchandise, including items that had been discontinued at the $1 level.

Gross margins will also benefit, with the higher price point offsetting freight, operating and other costs that have gone up.

“Accordingly, we have begun rolling out the $1.25 price point at all Dollar Tree stores nationwide,” said Chief Executive Michael Witynski in a statement.

The higher prices will be in 2,000 Dollar Tree stores in Dec... (Read more)