Dollar Tree is raising prices on the majority of their items to $1.25, amid the highest inflation the nation has seen in 30 years.
The Dollar Tree has not raised their prices at all in the 35 years that they have been operating.
In a statement about the price hike, the Dollar Tree announced that the change would be permanent.
“For 35 years, Dollar Tree has managed through inflationary periods to maintain the everything-for-one-dollar philosophy that distinguished Dollar Tree and made it one of the most successful retail concepts for three decades,” the statement asserted. “However, as detailed in its September announcement, the Company 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. This decision is permanent and is not a reaction to short-term or transitory market conditions.”
Dollar Tree President and CEO Michael Witynski said that tests have shown customers are willing to pay more and are excited about new products that the price hike may bring.
“We experienced a strong finish to the quarter, as shoppers are increasingly focused on value in this inflationary environment,” Witynski said in the statement. “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 company said that at the new price point, they will be able to “expand its offerings, introduce new products and sizes, and provide families with more of their daily essentials.”
“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,” Witynski added. “Guided by Dollar Tree’s same founding principles, we will be relentless in our commitment to offer our customers the best value possible.”
As prices of goods continues to rise, wages for the American workers are on the decline.
According to a recent report from Breitbart News, “bosses paid an average of 0.4 percent more per hour in October but prices paid by wage earners rose by 1.1 percent, pushing down real wages. What’s more, because weekly hours fell 0.3 percent, average weekly earnings decreased by 1.0 percent after adjusting for inflation.”
“Compared with a year ago, inflation-adjusted hourly earnings fell 1.1 percent and weekly earnings fell 1.4 percent,” the report continued.