Dollar Tree announced in November of 2021 that for the first time in 35 years, they would be raising their prices from $1 to $1.25 . They noted that the decision was permanent and it was to “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 bargain chain Dollar Tree — known for its eponymous $1 price on all products — is raising its prices for the first time in three decades, in a change they say is unrelated to the rising inflation causing costs of goods to increase around the country.
Another frequently asked inquiry is “Is Dollar Tree raising prices in 2021?”.
On Tuesday, Sept. 28, 2021, Dollar Tree Inc. announced a price increase in almost all its stores.
Another frequently asked question is “Why did Dollar Tree’s prices go up?”.
One source claimed in case you’re wondering what prompted the rise in pricing, it could be heavily tied to the rise in freight and transportation costs . In late August, freight data and media site Freightwaves reported that Dollar Tree said high freight costs were impacting their earnings.
Another common inquiry is “Did Dollar Tree raise their prices in December?”.
Dollar Tree added the $1. 25 prices to more than 2,000 stores in December (it has around 8,700 US stores), and Coresight said in a report that its “decline in shopper numbers appears to coincide with its price hike.”.
This begs the question “Is a Dollar Tree still a dollar store if its prices go up?”
With inflation creeping up, discount chain Dollar Tree announced it’s going to start raising some prices and carrying more items that cost $1.25 or $1.50, as part of a test. The first Dollar Tree opened in 1986.
Are Dollar Tree’s new prices alienating customers?
We won’t know for certain whether customers are turning their backs on Dollar Tree’s new prices until it reports its quarterly results in the coming weeks. But there are signs the move may be alienating some shoppers.
Is Dollar Tree’s supply chain change impacting retailers?
And it isn’t just Dollar Tree updating their supply methods , which will probably impact costs at many major retailers. “ Home Depot, Target, Costco, have also chartered their own vessels due to lack of space,” Dooner said. Though all these retailers “still have to go through the same congested ports.”.
Why is Dollar Tree charging so much more?
John Strong, a retail professor at William and Mary, said the discount chain has been faced with “how do I find ways to purchase products that I can sell at a dollar.” Generic brands and smaller packages work, but only work for so long. By charging more than a buck, Strong said Dollar Tree will be able to stock items with higher profit margins.
How much will the Dollar Tree plus price hike cost?
An initial guesstimate making the rounds on social media put the price hike at about $1.50 per item, but the press release stated that might just be the beginning. The announcement projected that by fiscal year-end 500 Dollar Tree Plus stores would be “offering an assortment of value-priced $1, $3, and $5 products.”.
The discount chain made headlines last year after announcing that most of its $1 items would soon be sold for $1.25. It was the last of the major dollar store chains in the US to stand by its $1 commitment even as investors applied pressure for it to raise prices.