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This Low-Cost Grocery Chain Is Raising Its Prices

"This decision is permanent," the company confirmed in a press release.

For some grocery stores—like Save A Lot, Shop Rite, Grocery Outlet, and more—what they sell and how can all be found in their name. It's the same case for Dollar Tree, a discount grocery and variety store that's been in business for over 60 years. The low-cost chain sells food items like cereal, spices, baking mixes, canned goods, condiments, and more. However, Dollar Tree's token $1 pricing on all items is about to go up to $1.25, the company recently announced.

In the 35 years its been offering items for $1, Dollar Tree has navigated through rises in inflation, and although the company says this new price hike isn't in response to events of the past year (such as supply chain issues), it does come at a turbulent time.

Related: Grocery Shoppers Say These 5 Items Are Cheaper Than Meat Right Now

"[T]he 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," Dollar Tree explained in a press release. "This decision is permanent and is not a reaction to short-term or transitory market conditions."

Dollar Tree says the price hike will allow the company to keep up with wage increases, expand its product offerings and sizes, as well as bring in items that were previously discontinued because of the limitations 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," the chain said.

Starting this month, customers at 2,000 locations will have to pay the extra 25 cents for items at 2,000 Dollar Tree locations. A full rollout to all locations is expected by the end of the first quarter of 2022.

When surveyed about the additional cost, 91% of shoppers said they would still shop at Dollar Tree with the same or more frequency, the company says.

This isn't the only place grocery shoppers will have to shell out more cash—supermarkets across the country are seeing the effects of inflation on their grocery bills, and unfortunately, prices will continue to spike, this grocery chain says.

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Amanda McDonald
Amanda has a master's degree in journalism from Northwestern University and a bachelor's degree in digital journalism from Loyola University Chicago. Read more about Amanda