Shoppers Had Comical, Angry Reactions To News That Dollar Tree Is Raising Prices To $1.25

• Dollar Tree announced that it will raise prices from $1 to $1.25 on the majority of their products by no later than March 31, 2022.
• The company says the change is not being made as a result of rising inflation, prompting all sorts of interesting reactions.
• More money news here.

In case you missed it over the long holiday weekend, a bit of news that may affect your shopping habits next year was released by discount retailer Dollar Tree.

The company announced that by no later than March 31, 2022 they will be raising the minimum price on a majority of their products from the ubiquitous $1.00 to $1.25.

The 25 percent price hike, according to a quarterly earnings release, is “not a reaction to short-term or transitory market conditions.”

CNN reports that the company believes this price hike will help the company increase its profit margins by “mitigating historically high merchandise cost increases.”

“The company believes this is the appropriate time to shift away from the constraints of the $1 price point in order to continue offering extreme value to customers,” CEO Michael Witynski said in a statement.

“This decision is permanent and is not a reaction to short-term or transitory market conditions. This new pricing strategy enables the company to reintroduce many customer favorites and key traffic-driving products that were previously discontinued due to the constraints of the $1 price point. The new price point will enable Dollar Tree to return to its historical gross margin range by mitigating historically-high merchandise cost increases, including freight and distribution costs, as well as higher operating costs, such as wage increases.”

Witynski reportedly made $10.8 MILLION in 2020 with $1.2 million of it coming from his salary, $2.4 million as a bonus, and $7.1 million in stock.

“We experienced a strong finish to the quarter, as shoppers are increasingly focused on value in this inflationary environment,” Witynski added. “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. Accordingly, we have begun rolling out the $1.25 price point at all Dollar Tree stores nationwide.”

Yes they have.

Many current customers filed their complaints about the 25 percent price increase on Twitter.

https://twitter.com/Bxlly20/status/1465360784033255424 https://twitter.com/5ftofAfroTexan/status/1465242513866989569

She has a point.

Then there’s this…

Merry Christmas everyone.