Late November, Dollar Tree announced that they will be raising their prices to $1.25, something unimaginable to the original founders of Dollar Tree. “Ditch the dollar, I believed, and we’d surrender our niche,” Macon Brock, one of the founders of Dollar Tree, wrote well before the company announced its change.

After 35 years of Dollar Tree staying at its $1.00 price point, the company announced that they would be raising prices to $1.25 due to current inflation and COVID-19’s effect on the current economy. Sustaining the $1.00 price point for any longer was bound to put a strain on the company, especially with shipping, transportation, and labor costs at an all time high due to the pandemic. With this price raise, competitors such as Dollar General and Five Below could potentially grow in popularity, attracting loyal Dollar Tree customers. 

In 2019, Dollar Tree introduced Dollar Tree Plus, where some Dollar Tree stores featured slightly higher prices. The company received positive feedback from customers who shopped at Dollar Tree Plus locations. Despite the excitement, there was a small decline in sales that continues to leave the current owners of Dollar Tree puzzled as to whether or not their decision will receive positive or negative feedback. 

Dollar Tree’s main customers are middle and low-income, and this price raise may potentially drive away many customers who rely on their local Dollar Trees. The company announced the majority of its stores will be at the $1.25 price point by May of 2022.