Dollar Tree Becomes $1.25 Tree: Prices Rise 25%, Ending 35-Year Streak of $1
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Spending a dollar at the eponymously-named Dollar Tree is going to become a thing of the past, the company said Tuesday.
Prices will be set at $1.25 beginning in December at 2,000 of the store’s 16,000 locations across the United States and Canada, the company said, citing an “inflationary environment” and other factors. Other locations will follow suit in the first three months of 2022, ending the chain’s 35-year streak of holding prices to a dollar.
“The additional price point at Dollar Tree affords us greater flexibility to manage the overall business, especially in a volatile, inflationary environment, while driving customer loyalty and store productivity,” President and CEO Michael Witynski said in a statement. “In this environment, we believe small-box, value retail is more important than any other retail sector to millions of households.
The Consumer Price Index, a measure of inflation, rose .9 percent in October, the Bureau of Labor Statistics said this month, marking a year-over-year increase of 6.2 percent, the highest rate since 1990.
Critics of the change raised eyebrows on social media.
Dollar Tree will soon be $1.25 tree.
The company announced it will raise prices from $1 to $1.25 on the majority of its products by the first quarter of 2022. @nmeyersohn reports. https://t.co/Ew2Gp5Nck7
— Rachel Ramirez (@rachjuramirez) November 23, 2021
The Dollar Store is raising prices 25%. The vast majority of goods they sell will be priced at $1.25 starting in 2022.
If you use the Dollar Store as a proxy for inflation rather than the Consumer Price Index, inflation is closer to 25% than the widely reported 6%. Ouch.
— Cameron Winklevoss (@cameron) November 23, 2021
Biden ruined the dollar store.
Dollar Tree hikes prices 25%. Most items will cost $1.25 https://t.co/0ztkhxK3Hi
— Arthur Schwartz (@ArthurSchwartz) November 23, 2021
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