New York (CNN Business) Dollar Tree will soon be $1.25 tree. Dollar Tree DLTR said in a quarterly earnings release Tuesday that its decision to raise prices to $1.25 permanently, however, was "not a reaction to short-term or transitory market conditions." Selling stuff strictly for $1 hampered Dollar Tree, the company said, and forced it stop selling some "customer favorites." Raising prices will give Dollar Tree more flexibility to reintroduce those items, expand its selection and bring new products and sizes to its stores. Dollar Tree also said that hiking prices will help the company increase its profit margins by "mitigating historically high merchandise cost increases," including freight and distribution costs, as well as wage increases.

Source: CNN November 23, 2021 22:15 UTC