The Dollar and 25 cents Tree

Riya Mathur

Recently, the American Dollar Tree chain raised its signature $1 price by twenty-five cents. Although some customers are disappointed, Dollar Tree says this new change will allow the company to offer a new selection of products with increased income. Investors are also content with this price alteration.

The president and chief executive officer, Michael Witynski, believes this change will be positive.

“Our Dollar Tree pricing tests have demonstrated broad consumer acceptance of the new price point and excitement about the additional offerings and extreme value we will be able to provide,” Witynski said. “Accordingly, we have begun rolling out the $1.25 price point at all Dollar Tree stores nationwide.”

However, customers seem to disapprove of this decision.

A Dollar Tree shopper in Bensalem was shocked.

“I can’t believe this. We’re living in an era of inflation,” the customer remarked.

In the third quarter fiscal, Dollar Tree released a statement about the topic of inflation.

“For 35 years, Dollar Tree has managed through inflationary periods to maintain the everything-for-one-dollar philosophy that distinguished Dollar Tree and made it one of the most successful retail concepts for three decades,” the company stated. “However, as detailed in its September announcement, the Company believes this is the appropriate time to shift away from the constraints of the $1.00 price point in order to continue offering extreme value to customers. This decision is permanent and is not a reaction to short-term or transitory market conditions.”

The era of the “dollar-store” seems to have ended. Other popular value chains such as Five Below, Family Dollar, and Dollar General have had prices above a dollar for a while.

Selling all products for a dollar can be difficult. With shipping and transportation costs also increasing as Dollar Tree’s profits are decreasing, it is understandable why this change has occurred.

With this choice, Dollar Tree enters a new financial age.

“They’re taking a risk and the shopping atmosphere is changing,” the Bensalem shopper added.


Lunney, Brianna