Dollar Tree items will now cost $1.25

NEW YORK — Faced with the rising outgo of goods and freight, discount retail concatenation Dollar Tree said Tuesday it volition beryllium raising its prices to $1.25 for the bulk of its products.

Dollar Tree said the crushed for raising its prices to $1.25 was not owed to “short-term oregon transitory marketplace conditions” and said the terms increases were permanent. The higher prices volition besides let the institution to header with precocious merchandise outgo increases arsenic good arsenic higher operating costs, specified arsenic wages, it said.

“(Dollar Tree) believes this is the due clip to displacement distant from the constraints of the $1.00 terms constituent successful bid to proceed offering utmost worth to customers,” the institution said successful a statement.

Dollar Tree was 1 of the past existent “dollar stores” aft astir of its contention had moved distant from that terms point.

The company, which is based successful Chesapeake, Virginia, said successful September it was investigating the higher prices astatine prime stores. On Tuesday, it said it volition present the caller terms constituent successful much than 2,000 further Dollar Tree stores successful December and implicit the rollout to each its stores by aboriginal adjacent year. The institution has astir 8,000 Dollar Tree stores.

CEO Michael Witynski said helium expects the Dollar Tree customers to stay loyal.

Its shoppers “believe that astatine $1.25, it’s inactive going to beryllium an undeniable worth due to the fact that of what they’re seeing retired successful the marketplace,” Witynski said connected a telephone with manufacture analysts. “And they cognize that Dollar Tree hasn’t raised its terms successful 35 years, truthful they’re giving america credit.”

The company’s banal roseate 9.2% connected Tuesday pursuing the announcement, which was paired with the company’s quarterly earnings. Analysts astatine Citigroup called the net “disappointing” but said investors are looking past net to the institution yet raising prices.