You might want to bring a few extra dollar bills next time you head over to Dollar Tree.
Even though Dollar Tree stores brand themselves as the place where everything sold there is only a dollar, the company will soon be selling products that cost more than a buck as costs of products in every area have increased.
“For decades, our customers have enjoyed the ‘thrill-of-the-hunt’ for value at one dollar — and we remain committed to that core proposition — but many are telling us that they also want a broader product assortment when they come to shop,” Dollar Tree CEO Michael Witynski said in a statement.
Along with limited supplies of a variety of products ranging from groceries to cars, the annual inflation rate — which increased to 4.2% in July — has made the cost of all goods and services provided by almost every business across the country skyrocket.
Last month, Dollar Tree said that the rising costs of shipping would cost up to $1.50 to $1.60 of its per-share profits this fiscal year, ABC News reported.
The retail chain had already started a pilot program that included selling higher-priced goods at a couple of hundred of the company’s 8,000 locations across the country at “Dollar Tree Plus” section of the store. Items sold in that area can go for as much as $5 while items that range in prices of $1.25 to $1.50 will soon make their way to the dollar section of some locations.
Dollar Tree Inc. shares increased 13% at the opening bell on Wednesday morning.
“We will continue to be fiercely protective of that promise, regardless of the price point, whether it is $1.00, $1.25, $1.50,” Witynski said.
