The impact of inflation continues, and prices at US "dollar stores" have also increased!

The discount chain is implementing permanent price increases at Dollar Tree Plus stores and most Dollar Tree stores , starting at $1.25 .

The latest news shows that Dollar Tree plans to launch its new prices in 2,000 Dollar Tree stores in December , and will cover all stores by the end of the first quarter of 2022. In 2019, the retailer first tested Dollar Tree Plus in stores, offering items priced at $1, $3 and $5.

The company said in a statement that Dollar Tree's continued commitment to maintaining a dollar balance despite inflation for 35 years has set it apart from other retailers and made it one of the most successful retail concepts over three decades.

According to the third quarter earnings report , the company believes that now is the right time to break away from the dollar price limit in order to continue to provide customers with extreme value. According to the chain, setting prices above $1 will enable the chain to provide more products that consumers want .

Dollar Tree first announced the price changes in September in response to supply chain slowdowns and higher shipping costs that were impacting the retailer's profitability, while keeping prices at $1 across the board.

Consumer prices rose 6.2% in October compared with the same period last year, the highest inflation rate since the 12-month period ending November 1990.

Now, as Dollar Tree rolls out these price changes, the company insists that this is not a short-term or temporary response to market conditions and that the retailer will allow the chain to reduce high costs associated with merchandise, shipping and distribution, and wages .

Dollar Tree said 77% of shoppers surveyed said they noticed price changes at stores, while 91% said they would continue to shop there despite the changes.

“Removing the one-dollar limit is an important step for our organization, and we are enthusiastic about the opportunity to meaningfully improve our shopper experience and unlock value for our stakeholders," Witynski said in the release. "Guided by the same founding principles of Dollar Tree, we will remain relentless in our commitment to providing the best possible value to our customers.”

In its third quarter results, Dollar Tree reported that its net sales increased 3.9 % to $6.42 billion. Gross margin was 27.5% of net sales, down from 31.2% last year .

Sources said the retailer's move will have an impact on its business.

USA

Dollar Store

Inflation