After more than 30 years of stable prices, Dollar Tree (NASDAQ) has announced that its November 23rd price hike was 25%. Is the company able to keep its current growth rate after this price rise? Let’s find out.Dollar Tree, Inc. (DLTR), which is headquartered in Chesapeake, Va., is a leading discount retailer operating in 48 states in the United States and Canada. More than 15500 retail outlets are owned and operated by the company. Family Dollar, its subsidiary is among the most popular retailers in America. For 35 years, the company offered its products for $1.

DLTR however announced on November 23rd, 2021 that prices would rise by 25% to $1.25. According to management, the price rise will permit the company significantly increase its products and size offerings. DLTR expects to reintroduce customer favorite products as well as key traffic-driving items that were discontinued previously due to $1 pricing restrictions. This price increase will be applied to more than 2000 legacy Dollar Tree stores next month, and all Dollar Tree stores by the end of the first quarter 2022. Regarding this, DLTR President and CEO Michael Witynski said, “Lifting the one-dollar constraint represents a monumental step for our organization, and we are enthusiastic about the opportunity to meaningfully improve our shoppers’ experience and unlock value for our stakeholders.”

Shares of DLTR have declined 2.3% in price since the news release to close yesterday’s trading session at $141.35. While analysts expect the company’s revenues to improve, its EPS might fall amid continuing supply chain disruptions despite the price hike.

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