Gone are the days where dollar stores meant paying just a dollar for items.
Dollar Tree is raising the maximum price it can charge for an item sold at their stores. Instead of the previous $5 cap which was set in June 2023, now stores can charge up to $7.
The discount retailer made the announcement during their fourth quarter earnings call earlier this month, according to USA Today.
“This year, across 3,000 stores, we expect to expand our multi-price assortment by over 300 items at price points ranging from $1.50 to $7,” Dollar Tree CEO Rick Dreiling said during the call.
Executives claimed a trend they’ve seen is customers in a higher income bracket are spending more at discount retailers like Dollar Tree.
“The fastest-growing demographic is north of $125,000 a year in income. It’s not like the Northeast is strong and the West is weak. That boat is lifting pretty even all the way up.”
Customers can expect food, pet, and personal care items to be impacted by the price change.
“Over time, you will also see us fully integrate multi-price merchandise more into our stores so our shoppers will find $5 bags of dog food next to our traditional $1.25 pet treats and toys, and our $3 bags of candy will be found in the candy aisle,” Dreiling said.
The report comes shortly after the company announced they would be closing approximately 600 of their Family Dollar locations and about 400 of their Family Dollar and Dollar Tree locations.
In 2021, the company announced Dollar Tree would increase their prices 25%.
What do you think about this change? Is it still a dollar store if prices are capped at $7?
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