Dollar Tree Dropping $1 Price Point For $1.25

Company says increase is not linked to market conditions


Daytona Beach, FL - Dollar Tree? More like Dollar-Twenty Five Tree.

For 35 years, Dollar Tree has maintained its “everything-for-one-dollar” philosophy through different inflationary periods, making it one of the most successful retail concepts for three decades. But the Chesapeake, Virginia-based company announced in a report regarding the end of their third quarter that they will begin to adopt a new price point of $1.25 across a majority of their stock.

The company had already decided in September that it’s now the appropriate time to shift away from the constraints of the $1.00 price point “in order to continue offering extreme value to customers.” The company also added that this change is permanent and not a reaction to market conditions.

“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,” wrote the company in a press release. “Additionally, this new pricing strategy enables the Company to reintroduce many customer favorites and key traffic-driving products that were previously discontinued due to the constraints of the $1.00 price point.”

It was in September that Dollar Tree announced plans to add additional price points above $1.00 to all Dollar Tree Plus stores and—on a trial basis—to selected legacy Dollar Tree stores.  Encouraged by the positive customer feedback and store performance during the testing phase, the company has since introduced the initiative in nearly 200 additional legacy Dollar Tree stores.

“Lifting the one-dollar constraint represents a monumental step for our organization and we are enthusiastic about the opportunity to meaningfully improve our shoppers’ experience and unlock value for our stakeholders,” Michael Witynski, CEO of Dollar Tree said. “Guided by Dollar Tree’s same founding principles, we will be relentless in our commitment to offer our customers the best value possible.”

According to Dollar Tree, 77 percent of shoppers said they were almost immediately aware of the new price point when visiting the store. While 91 percent of those surveyed said they would shop Dollar Tree with the same or increased frequency.


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