Popular discount store Dollar Tree said it will raise prices from $1 to $1.25 for most of its products beginning in 2022 to keep up with rising costs as the country faces the highest inflation in 31 years.
In a quarterly earnings report released on Tuesday, the company announced that the famous $1 price point was limiting the variety of products it could offer customers at stores, forcing it hike prices to expand its inventory.
'The $1.25 price point, which will apply to a majority of Dollar Tree's assortment, will enhance the company's ability to materially expand its offerings, introduce new products and sizes, and provide families with more of their daily essentials,' the company said.
Popular discount store Dollar Tree said that it will raise prices from $1 to $1.25 for most of its products beginning in 2022
Dollar Tree said that the famous $1 price point was limiting the variety of products it could offer customers at stores and that they would raise it a quarter
General Mills notified retail customers that it would be raising prices up to 20 percent on hundred of items across dozens of brands in mid-January including Cheerios cereal
The popular discount store carries a wide variety of products, including houseware, cleaning supplies, snacks, party supplies and décor among other goods.
'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,' CEO Michael Witynski said in a statement.
The company's stock price didn't seem to be hurt by the announcement, jumping nearly 10 percent to 144.90 .
The company said a survey revealed that 91 percent of customers said they would continue to shop at the discount store at the same rate even with the increased bottom-line price.
Dollar Tree's need to raise prices comes as inflation soared 6.2 percent, its highest point since November 1990, which has led to increases in the cost of essentials for Americans such as food, gas, furniture, cars and other staples.
