Shoppers leave a Dollar Tree store in the Bronx on July 28, 2014. Dollar Tree announced it will increase its prices to $1.25 starting in December. File Photo by Andrew Gombert/EPA
Nov. 23 (UPI) -- Dollar Tree announced that its price point will increase next month from $1 to $1.25 to cover cost increases and continue offering products that increased beyond its traditional price threshold.
The discount retailer made the announcement Tuesday while reporting third-quarter results, including a 3.9% increase in consolidated net sales to $6.42 billion.
"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," the company said in a statement.
"However, as detailed in its September announcement, the company believes this 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 company said the move is a permanent change and not a short-term reaction to the current inflation increases and transitory market conditions.
The company said the $1.25 price point will allow them to expand its offerings and introduce new products and sizes.
"The company will have greater flexibility to continue providing incredible value that helps customers get the everyday items they need and celebratory and seasonal products Dollar Tree is best known for," the Dollar Store said.
The company said the new $1.25 price point to begin in December and spread throughout all the stories by the end of the first quarter in 2022.
"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," Michael Witynski, Dollar Tree's president and CEO said in a statement.
"Guided by Dollar Tree's same founding principles, we will be relentless in our commitment to offering our customers the best value possible."