Dollar Tree was one of the last true “dollar stores” after most of its competition had moved away from that price point.
Dollar Tree signage stands at the entrance to the parking lot of in San Francisco, Aug. 29, 2019.
Dollar Tree said the reason for raising its prices to $1.25 was not due to “short-term or transitory market conditions” and said the price increases were permanent. The higher prices will also allow the company to cope with high merchandise cost increases as well as higher operating costs, such as wages, it said.
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