Dollar Tree tiptoes away from $1 limit in test of higher prices

Bloomberg

Dollar Tree Inc is moving above the price point that gave the discounter its name.
The retailer’s legacy stores will soon begin testing sales of products that cost more than $1, according to a company statement. Dollar Tree will also add more goods that go for more than a buck at its Combo and Dollar Tree Plus stores, which were already charging $3 or $5 for some items. Dollar General Corp, a rival chain, also sells products for more than $1.
Many customers “are telling us that they also want a broader product assortment when they come to shop,” Dollar Tree CEO Michael Witynski said. “We believe testing additional price points above $1 for Dollar Tree product will enable us over time to expand our assortments, introduce new products and meet our customers’ everyday needs.”
The test signals the potential end of an era for Dollar Tree, which has long based its business on the $1 price point, as inflation pushes up the cost of many goods. Annual growth in US consumer prices surged past the 5% mark this year for the first time in more than a decade, as rising demand collided with supply constraints in the second year of Covid-19 pandemic.