(CTN News) – Dollar Tree, Inc. announced during its earnings call this month that it will be adding hundreds of new items to its store shelves throughout the year—but at a higher price than in the past. Items will be priced at $7 at most Dollar Tree stores in the future.
The news comes as Dollar Tree, Inc., which is expanding across the country, announced that hundreds of Family Dollar stores will be closing this year during its fourth-quarter earnings call.
How much will Dollar Tree raise prices?
On March 13, Dollar Tree CEO Rick Dreiling said the discount chain will have over 300 items for $1.50 to $7 across 3,000 stores.
Yahoo Finance reports the chain set a $5 cap less than a year ago.
Items will stay at $1.25, which is what they were in 2021.
Why is Dollar Tree raising prices?
Dreiling explained that his company will be able to add more products to its shelves due to the price increase.
“As we move forward, you will also see us fully integrate multi-price merchandise into our stores so customers will find our $5 bags of dog food next to our traditional $1.25 pet treats and toys, and our $3 bags of candy will be displayed in the candy aisle as well,” Dreiling said.
It has also been noted that a growing number of Dollar Tree customers are making six figures or more per year.
The Wall Street Journal reported this week that according to InMarket, a company that tracks retail traffic, there was an increase of 4% in dollar store visits by consumers who make more than $100,000, in the second half of 2022 and 2023.
Family Dollar stores closing.
After Dollar Tree, Inc. acquired Family Dollar in 2015, the company announced that it would be closing about 600 Family Dollar stores this year due to a lack of performance from the stores in 2023.
In order to clear their inventories before closing, the company has not disclosed the locations of the stores that will be closing, though some local newspaper reports have revealed that some stores will be offering reduced prices.
