The Dollar Tree, popularly known for selling nearly all its items for one US dollar, announced on Tuesday (November 23), that it has raised its baseline price. Shoppers will now purchase items at US$1.25.

Michael Wiytinski, president and CEO, linked the increase in price to inflation, adding that customers will stick with the establishment nonetheless.

The discount store company, which has locations in the US and Canada, has conducted dollar tree pricing tests which have indicated that there is a broad consumer acceptance to the recent change.

“Our Dollar Tree pricing tests have demonstrated broad consumer acceptance of the new price point and excitement about the additional offerings and extreme value we will be able to provide,” Witynski said in statement.

Neil Saunders, an analyst at GlobalData Retail, noted that many of the loyal customers are likely to continue shopping at the Dollar store as they understand the struggles being faced with inflation and a decrease in supply chains.

Sucharita Kodali, a vice president and principal analyst at Forrester Research, added that customers will be able to get over any initial sticker shock.

“I think if there are specific items that people are used to buying for a dollar, like soda or a candy bar, it could be a shock to have a higher price, but at the same time, I don’t know that people will riot,” she said.

“Most people see it as a quarter, not as 25 percent inflation.”

As the one-dollar cap has been lifted, the company shared that it will now be able to expand its offerings and introduce new products and sizes and provide families with more day-to-day essentials. The change in price has already been reflected at a few of the 15,288 Dollar stores.

A change to the name of the store seems unlikely, “The ‘One Dollar and a Quarter Tree store’ doesn’t have the same ring to it,” Saunders said.