The increase is the first in 35 years.
Dollar Tree announced Tuesday that they are increasing the prices of items from $1 to $1.25.
For 35 years, the company has carried the $1 value of goods and for the first time is increasing prices by a quarter, The Hill reported.
The company said in a statement the idea is “to continue offering extreme value to consumers.” The decision is permanent, the company added.
Dollar Tree added that the move was not made in response to the current market and is not a sign of the times, but instead to “enhance the Company’s ability to materially expand its offerings, introduce new products and sizes, and provide families with more of their daily essentials.”
“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,” they added.
Dollar Tree also said that because of the new price point, they can actually get items that were discontinued in their stores because of the $1 mark.
“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,” they added.
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