Dollar Tree has kept prices at $1 for 35 years but that is soon changing. The company announced Tuesday, Nov. 23, it will shift to a $1.25 price point for a majority of its items at all stores nationwide by the end of the first quarter of 2022.
“We have begun rolling out the $1.25 price point at all Dollar Tree stores nationwide,” Michael Witynski, president and chief executive officer of Dollar Tree, said in a press release. “The continuing expansion of our key strategic initiatives, including Dollar Tree Plus, Combo Stores and the H2 format, are all going well and on, or ahead of, plan. I am very proud of our team’s efforts – especially those in our stores and distribution centers – to serve our customers by delivering incredible value on everyday products.”
In the press release, Dollar Tree states they believe it is the appropriate time to shift away from the constraints of the $1 price point in order to continue offering “extreme value to customers.” The decision is permanent and not a reaction to short-term or transitory market conditions.
According to the company, the new price point will allow the reintroduction of customer favorites that were previously discontinued due to the constraints of the $1 price point.
In September, Dollar Tree announced its plan to add additional price points above $1 to all Dollar Tree Plus Stores on a test-and-learn basis to selected legacy Dollar Tree stores. The company states there was positive customer feedback and store performance during the initial testing phase.
The company plans to introduce the new price point in more than 2,000 additional legacy Dollar Tree stores in December and complete the rollout to all stores by the end of the first fiscal quarter of 2022.