clearn.png
Saturday December 4th, 2021 5:24AM

Dollar Tree makes it official: Items will now cost $1.25

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — Faced with the rising cost of goods and freight, discount retail chain Dollar Tree said Tuesday it will be raising its prices to $1.25 for the majority of its products.

Dollar Tree said the reason for raising its prices to $1.25 was not due to “short-term or transitory market conditions” and said the price increases were permanent. The higher prices will also allow the company to cope with high merchandise cost increases as well as higher operating costs, such as wages, it said.

“(Dollar Tree) believes this is 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 said in a statement.

Dollar Tree was one of the last true “dollar stores” after most of its competition had moved away from that price point.

The company, which is based in Chesapeake, Virginia, said in September it was testing the higher prices at select stores. On Tuesday, it said it will introduce the new price point in more than 2,000 additional Dollar Tree stores in December and complete the rollout to all its stores by early next year. The company has about 8,000 Dollar Tree stores.

CEO Michael Witynski said he expects the Dollar Tree customers to remain loyal.

Its shoppers “believe that at $1.25, it’s still going to be an undeniable value because of what they’re seeing out in the marketplace,” Witynski said on a call with industry analysts. “And they know that Dollar Tree hasn’t raised its price in 35 years, so they’re giving us credit.”

The company's stock rose 9.2% on Tuesday following the announcement, which was paired with the company's quarterly earnings. Analysts at Citigroup called the earnings “disappointing” but said investors are looking past earnings to the company finally raising prices.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Penn State's Franklin agrees to $75M, 10-year extension
Penn State football coach James Franklin has agreed to a new 10-year contract that will guarantee him at least $75 million through 2031
5:25PM ( 13 minutes ago )
Missouri man exonerated in 3 killings, free after 4 decades
A Kansas City man who was jailed for more than 40 years for three murders has been released from prison after a judge ruled he was wrongfully convicted in 1979
5:23PM ( 14 minutes ago )
Former MLB outfielder, manager Bill Virdon dies at 90
Bill Virdon, who helped the Pittsburgh Pirates to the 1960 World Series before enjoying success as manager of the Houston Astros, has died
5:21PM ( 17 minutes ago )
Associated Press (AP)
LA luxury mall latest to be hit by smash-and-grab thieves
Los Angeles police say a group of thieves smashed windows at a department store at a luxury mall
4:48PM ( 50 minutes ago )
Biden aims to do what presidents often can't: Beat inflation
LBJ tried jawboning
4:41PM ( 57 minutes ago )
Samsung expected to build $17B chip factory in Texas
Samsung is planning to build a $17 billion semiconductor factory in Texas amid a global shortage of chips used in phones, laptops, cars and other electronic devices
4:36PM ( 1 hour ago )
AP Business
Stocks edge lower, oil prices rise despite release of crude
Stocks edged lower in choppy trading on Wall Street Tuesday as losses from communication and technology companies tempered gains elsewhere in the market
2:50PM ( 2 hours ago )
Turkish lira plunges after Erdogan defends rate cuts
The Turkish currency has weakened by some 10% against the U.S. dollar, a day after President Recep Tayyip Erdogan insisted there would be no turning back from his unconventional policy of cutting interest rates despite high inflation
1:00PM ( 4 hours ago )
Stocks wobble, oil prices rise despite release of crude
Stocks wobbled in choppy trading on Wall Street Tuesday as gains from banks and energy companies countered losses from communications and technology companies
11:53AM ( 5 hours ago )
AP Business - Economy
Penn State's Franklin agrees to $75M, 10-year extension
Penn State football coach James Franklin has agreed to a new 10-year contract that will guarantee him at least $75 million through 2031
5:25PM ( 13 minutes ago )
Former MLB outfielder, manager Bill Virdon dies at 90
Bill Virdon, who helped the Pittsburgh Pirates to the 1960 World Series before enjoying success as manager of the Houston Astros, has died
5:21PM ( 17 minutes ago )
Fighting gas prices, US to release 50 million barrels of oil
President Joe Biden is ordering a record 50 million barrels of oil released from America's strategic reserve to help bring down energy costs
5:14PM ( 25 minutes ago )
Jury awards $26M in damages for Unite the Right violence
A jury has ordered 17 white nationalist leaders and organizations to pay $26 million in damages over violence that erupted during the deadly 2017 Unite the Right rally in Charlottesville
5:10PM ( 28 minutes ago )
Man charged with 5 homicide counts in deadly Waukesha crash
Prosecutors in Wisconsin have charged a man with intentional homicide in the deaths of five people who were killed when an SUV was driven into a Christmas parade
5:06PM ( 32 minutes ago )