Inflation has hit the United States hard, with a shocking 4.2 percent rate in July, the highest in decades.

This economic pressure has forced businesses, including Dollar Tree, known for selling items at $1, to make significant adjustments.

Dollar Tree faced a decline in stock prices, dropping nearly seventeen percent in one trading session, as it grappled with rising shipping costs and the need to combat inflation.

Dollar Tree’s decision to sell items for more than a dollar came after investors saw a hit of $1.50 to $1.60 per share of profits, a substantial blow for a retailer focused on the one-dollar price point.

The company cited the economic challenges posed by inflation and the pandemic as reasons for the pricing adjustments.

CEO Michael Witynski acknowledged the shift in a prepared statement, stating, “For decades, our customers have enjoyed the ‘thrill-of-the-hunt’ for value at one dollar – and we remain committed to that core proposition – but many are telling us that they also want a broader product assortment when they come to shop.”