Dollar Tree Is Raising Prices Again — Here's Which Items Will Cost More
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Dollar Tree, an affordable retailer beloved by many for its $1.25 finds, has announced an increase in its max price — yet again.
On March 13, during a fourth-quarter earnings call, Chairman and Chief Executive Officer Rick Dreiling announced that in over 3,000 locations across the country, shoppers will now find items as high as $7 — two dollars more than the previous max price increase.
Categories you can expect to see bumped in price include food, snacks, beverages, pet care, and personal care, said Dreiling. The good news is that many items continue to be sold at the fixed price point of $1.25, according to the CEO.
"Even as our multi-price assortment expands over time, the vast majority of the items sold in Dollar Tree stores will remain at our entry-level fixed price point," he said. "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. This is the next exciting chapter of the Dollar Tree value story: New items, more choices and more savings."
In the same call, Dreiling noted, "the fastest-growing demographic is north of $125,000 a year in income," which could explain one reason for the increase.
Still, the price hike isn't the first in Dollar Tree's history. In fact, Yahoo Finance reports that in 2023, there was a $5 cap raise, and in 2021, the max went from $1 (hence the brand's name) to $1.25, per CNN.
On a positive note, the company has introduced $3, $4 and $5 frozen and refrigerated items at thousands of locations. This is especially impactful in food deserts, where communities rely on stores like the Dollar Tree for groceries.
"Today, we typically offer multi-price frozen product in three coolers within our usual 10-cooler bank. Over time, that will evolve to eight out of 10 as we expand the assortment," Dreiling said.
All of this comes at the same time it was reported that nearly 1,000 Family Dollar stores, which are owned by Dollar Tree, would be closing by June.
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