WASHINGTON — Dollar Tree may soon need to add an asterisk to the end of its name.
The low-cost retailer announced Tuesday that it would be raising the price of the majority of its products to $1.25 in all its stores by early 2022.
The company explained in a news release about its third quarter financial earnings that this decision "is permanent and is not a reaction to short-term or transitory market conditions."
For decades the company has stuck to its "Everything's $1" mantra. But Dollar Tree said the slightly higher prices will let it introduce new products and bring back some "customer favorites and key traffic-driving products" that were previously discontinued because of the $1.00 price point.
The $1.25 price point will be rolled out to more than 2,000 Dollar Tree stores in December, the company announced Tuesday.
Back in September, the Chesapeake, Virginia, company said it planned to start selling some items for $1.25 to $1.50 at certain locations amid the typical assortment of $1 products.
The company had already begun testing higher prices at several hundred of its nearly 8,000 locations in a section of the store called “Dollar Tree Plus" with items that can go for as much as $5.
“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,” Dollar Tree CEO Michael Witynski said in a statement. “Guided by Dollar Tree’s same founding principles, we will be relentless in our commitment to offer our customers the best value possible.”
The Associated Press contributed to this report.