For 35 years, the discount chain Dollar Tree committed to selling almost everything for $1. Time has come to pass the buck: Prices for most items will increase to $1.25.
The company has been testing higher-priced products for months, adding Dollar Tree Plus stores with products at $3 and $5. In September, the company said shoppers had a “positive customer reaction” and announced plans to try $1.25 and $1.50 at some traditional Dollar Tree locations. On Tuesday, it said that test, too, produced “overwhelmingly positive” results from undeterred shoppers.
To abide by the $1 restriction, the discount chain had to stop selling some sizes and products — which it hopes to return to its shelves.
Each year, the value of a dollar is eroded by inflation, making a dollar price commitment more difficult to maintain. Last month, inflation reached the highest rate since 1990.
Dollar Tree’s rivals have been veering away from strict $1 prices — or even $5, in the case of Five Below. Now, the final stickler is conceding. Dollar Tree plans to roll out higher prices to all stores by early 2022.