Dollar Tree has been known as one of the country's last true dollar stores, a place where you could walk in and trust that everything was priced one dollar or less. Now, that's all about to change. The Chesapeake, VA-based chain announced Tuesday that it intends on raising the prices for most of its in-store items to $1.25 beginning early next year.
In a quarterly earnings release distributed Tuesday, Dollar Tree said the new price will be applied to "a majority of [the company's] assortment." That same release confirmed the increase in pricing isn't a reaction to current market status or any "short-term conditions," but rather a method that will allow the company to bring back some previous fan-favorite items that were removed from the stores because of the previous pricing model.
The new price will be a permanent change for the chain, and it's expected all stores will follow the new pricing by the end of the company's first-quarter next year.
"The Company was very encouraged by the positive customer feedback and store performance during the initial testing phase, and has since introduced the initiative in nearly 200 additional legacy Dollar Tree stores," Dollar Tree's earning statements reads.
"The results to date have been overwhelmingly positive. When surveyed, 77% of shoppers indicated they were almost immediately aware of the new price point when visiting the store," it adds. "Additionally, 91% of those surveyed indicated they would shop Dollar Tree with the same or increased frequency. Many have also indicated they are seeing price increases across the market and that Dollar Tree is still providing the products they need at an undeniable value. As key traffic-driving products are reintroduced, the Company is confident that customers will be extremely pleased with the even greater value they will discover on store shelves."
Dollar Tree currently owns and operates over 15,000 stores in the United States and Canada.
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