Dollar Tree announced that it will raise the maximum price of its items by the end of 2024, saying that it wants to offer a more varied selection of products at different price points.
“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,” CEO Rick Dreiling said during a March 13 fourth-quarter earnings call.
If you’re a Dollar Store customer, you can expect to be paying higher prices for food and snack items, beverages, pet care, personal care and other categories.
MORE: What to buy and what to skip on your next trip to Dollar Tree
While most products at the dollar-store chain remain at $1.25, Dreiling explained that highest prices at Dollar tree stores are changing because it wants to offer customers a more “relevant assortment.”
He noted that more people from wealthier households — earning at least $125,000 annually — became new customers and made up the store’s fastest growing demographic in 2023. A report from the Wall Street Journal that year backs up the trend in a more expensive economy, indicating that 45% of households with six-figure incomes are likely to visit dollar stores, an increase from 39% just the year before. The story noted that traffic to dollar stores from those higher-income people went up by 4% during the year.
The company announced just last June that it was testing more groceries at a $5 price point. However, it rolled out its multi-price strategy back in 2019.
Dollar Tree also announced during a recent quarterly earnings call that it would be closing around 1,000 stores nationwide — mostly Family Dollar stores, from the chain it acquired in 2015. The company announced in a quarterly earnings call that it would close 600 stores by the middle of this year and another 370 in the coming years as those stores’ leases expire.
This story originally appeared on Don't Waste Your Money.
