Record-high prices at the grocery store and gas pumps have plagued Americans for weeks, and now one of the last low-priced retailers is raising following suit.
Dollar Tree announced Tuesday (November 23) that it will be raising the prices of most items carried in stores –– increasing from its famous $1 price tag to $1.25.
However, the retailer said the price hike is more to do with its product offerings than the current inflation. Raising prices, the retailer said would allow it to start selling “customer favorites” it had to previously halt.
“This is the appropriate time to shift away from the constraints of the $1 price point,” CEO Michael Wityns said in a statement.
According to reports, Dollar Tree shoppers should expect to start seeing the higher prices within the first three months of the new year. And the company says the price increases are permanent.
For $35 years, Dollar Tree has sold stationary, party, seasonal, and kitchen items for a single dollar. Pressure from Wall Street and even other low-price retail competitors who’ve already raised prices makes Dollar Tree’s price hike nearly inevitable but also possibly mark the beginning of the end for true $1 stores.
Back in September, Dollar Tree announced it would start offering $3 and $5 items to more of its stores.