As Leah highlighted in September, Dollar Tree was unable to carry out its business model of charging $1.00 for all of its items." A press release from the company on November 23 confirmed that this change is happening, that it will reach all of its stores by the end of April, and that it will be permanent.
The Tuesday press release read in part:
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. 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.
“We are making great progress on our key strategic initiatives – Dollar Tree Plus, Combo Stores and the H2 format – and, as previously announced, we are accelerating these initiatives in 2022. The additional price point at Dollar Tree affords us greater flexibility to manage the overall business, especially in a volatile, inflationary environment, while driving customer loyalty and store productivity,” [Michael Witynski, President and Chief Executive Officer] concluded...
The press release also made reference to the September announcement, explaining that its decision to offer items at a higher price point at Dollar Tree Plus and certain legacy stores. "The Company was very encouraged by the positive customer feedback and store performance during the initial testing phase, and has since introduced the initiative in nearly 200 additional legacy Dollar Tree stores," it noted.
In his reporting for NBC News, David K. Li emphasized the role inflation plays, including in his headline.
He went on to write:
While some items cost more than $1, Dollar Tree is widely known for holding nearly all its goods to the $1-per-unit price point, said Neil Saunders, an analyst at GlobalData Retail.
Most of the company's loyal customers understand the nation's struggles with inflation and supply chain slowdowns, and they are likely to stick with Dollar Tree despite having to shell out $1.25 for many items, Saunders said.
Many were quick to react and blame President Joe Biden over Twitter, as well as highlight how inflation hurts the poor most of all.
Dollar Tree becomes $1.25 Tree. Inflation is a tax on the poor and middle class. Inflation makes the rich richer. Get smart. Get richer. I am buying more gold, silver, Bitcoin, ethereum, rental real estate, and oil. What are you buying?— therealkiyosaki (@theRealKiyosaki) November 24, 2021
Only Biden could make Dollar Tree into $1.25 Tree. pic.twitter.com/9qIjVKwF1l— Sen. Marsha Blackburn (@MarshaBlackburn) November 25, 2021
Thanks Biden. https://t.co/i3SE7dcH3K— Kevin McCarthy (@GOPLeader) November 23, 2021
Joe Biden’s inflation is so bad that even Dollar Tree can’t keep up.— Representative Mike Loychik (@MikeLoychik) November 24, 2021
In case you still don't believe inflation fears are real:— Joe Pompliano (@JoePompliano) November 23, 2021
After offering all goods at $1 for the last 35 years, Dollar Tree says they are permanently changing their pricing model so that everything will now be $1.25 or less.
You can't make this stuff up.
It only took 11 months of #Bidenflation for dollar tree to no longer be able to afford to sell things at $1.00.— Claudia Tenney (@claudiatenney) November 23, 2021
We've had dollar stores for years... until Joe.
The WORST President of our lifetime. pic.twitter.com/zSeBDhqyEa
The blame when it comes to inflation lies with Biden not just over Twitter, but in the polls as well. As Leah covered on Wednesday, a Yahoo News/YouGov survey found that 57 percent of respondents blame the president for inflation.