SAN FRANCISCO (KRON) – It’s official: Dollar Tree has broken the dollar barrier.
The discount chain on Tuesday announced during its third-quarter earnings results call that the majority of its $1 items will now be sold for $1.25.
In addition to this change, the company said it is also expanding its higher-priced “Dollar Tree Plus” line which includes items that cost between $3 and $5. That line expansion is scheduled to roll out to thousands of stores by 2024, according to the company.
The company had already begun testing higher prices for its “Dollar Tree Plus” section at several hundred of its nearly 8,000 locations.
Also during the earnings call, the company explained why it would be breaking the mold.
“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 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 company said in part.
Dollar Tree announced it would be breaking the mold and raising prices back in September, citing the soaring costs of clothes, cars, and food as the global economy emerges from a pandemic uppercut.
In August, the retail chain said rising shipping costs would take a bite of $1.50 to $1.60 out of its pre-share profits for this year.
“For decades, our customers have enjoyed the ‘thrill-of-the-hunt’ for value at one dollar – and we remain committed to that core proposition – but many are telling us that they also want a broader product assortment when they come to shop,” said CEO Michael Witynski in a prepared statement.
“We will continue to be fiercely protective of that promise, regardless of the price point, whether it is $1.00, $1.25, $1.50,” Witynski said.
Dollar Tree operates more than 15,000 stores across 48 states and Canada.
The Associated Press contributed to this report.