Dollar Tree Stores Change Price Point to $1.25 Due to Inflationary Environment - CEO

WASHINGTON (Sputnik) - The US chain store Dollar Tree is raising its price point from the namesake $1 to $1.25 as a result of the current inflationary economic environment, company President and CEO Michael Witynski said.

“We experienced a strong finish to the quarter, as shoppers are increasingly focused on value in this inflationary environment,” Witynski said on Tuesday. “Our Dollar Tree pricing tests have demonstrated broad consumer acceptance of the new price point and excitement about the additional offerings and extreme value we will be able to provide. Accordingly, we have begun rolling out the $1.25 price point at all Dollar Tree stores nationwide.”

The decision to raise the price point is permanent and not a reaction to the inflationary market conditions, but rather, an effort to provide customers with “extreme value” and expand product offerings in the current environment, Witynski said.

The move will also allow Dollar Tree to reintroduce products that were previously discontinued due to the constraints of the $1 price point, he added.

According to surveys cited in the company’s press release, 91% of respondents indicated that they would still shop at Dollar Tree with the same or increased frequency despite the price increase and many indicated that they are still being provided products they need at low costs.

The announcement comes amid concerns over the decrease in the value of the US dollar that results in higher prices. The Labor Department reported earlier this month that the US Consumer Price Index (CPI), which represents an array of products ranging from gasoline and health care to groceries and rents, rose 6.2% during the year to October. It was the fastest growth of the so-called CPI since November 1990, an acceleration driven mostly by pump prices of fuel running at seven-year highs.