Dollar Tree, a company long celebrated for its $1 price tags, is poised to redefine its pricing structure, raising its highest price to $7 as costs rise across the board.
For more than three decades, thrifty shoppers knew they could rely on Dollar Tree for bargain deals, with every item in the store priced at $1. This price point remained unaltered until November 2021 when, amid much debate, the company adjusted its base price to $1.25.
“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,” said CEO Rick Dreiling. “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.”
While met with skepticism, the change has increased sales and diversified product offerings.
“’Our shift to a $1.25 price point breathed new life into our product value,” said Michael Witynski, former CEO of the company, reflecting on the year following the change, the Daily Mail reported.
Dollar Tree had expanded its product line last June to include items tagged at up to $5. This affected mainly frozen and chilled products.
Dollar Tree has eyes on a future where products could reach as much as $10, as articulated in the recent earnings call by the CEO.
“We firmly believe in the $10 goal that we previously discussed … and we are progressing towards that ambition,” Mr. Dreiling told investors.
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