Dollar Tree will raise the price of most items from $1 to $1.25 by the end of April, the company said on Tuesday.
“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,” said the company in a statement.
In the past, the company discontinued products due to price constraints but this change will allow companies to bring back customer favorites, introduce new products and expand their offerings.
The company tested out the new prices and received an “overwhelmingly positive” result.
- The survey indicated that 77 % of shoppers were aware of the changed price and 91% indicated that they would continue shopping at the dollar store.
- Additionally, many still thought that the price set was still an “undeniable value.”
The new price points will be introduced to 2,000 stores in December, and the rest will reflect the changes by April. The company currently operates more than 15,000 stores across U.S. and Canada, per the company website.
According to The New York Times, Dollar Tree shares rose by 11% after the announcement.
“Lifting the one-dollar constraint represents a monumental step for our organization and we are enthusiastic about the opportunity to meaningfully improve our shoppers’ experience and unlock value for our stakeholders,” said Michael Witynski, the president and chief executive officer.