Dollar Tree to permanently raise prices

Dollar Tree raises prices
Photo credit Getty Images

The Dollar Tree name just became as ironic as it is iconic following news that the dollar store's prices are going up.

The company —which CNN describes as one of America's last remaining true dollar stores — said Tuesday it will raise prices from $1 to $1.25 on the majority of its products by the first quarter of 2022. "The change is a sign of the pressures low-cost retailers face holding down prices during a period of rising inflation," CNN reported.

Dollar Tree said in a release its decision to raise prices is permanent, and "not a reaction to short-term or transitory market conditions."

On the positive side, the CEO said the higher price point allows the company to offer a wider range of merchandise, including items that had been discontinued when they sold everything for $1.

“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,” said Michael Witynski, president and CEO of Dollar Tree.

As for the name, the company has not announced any plans to become the "Dollar and a Quarter Tree."

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