Dollar Tree, a renowned discount retailer, is set to increase its price cap from $5 to $7 on various items as it continues adjusting to economic pressures. The announcement was made without a specific date but is expected to roll out across all stores in 2024. This marks another significant shift from the traditional dollar store model, following a rise in the base price from $1 to $1.25 in 2021.
Amidst these price adjustments, Dollar Tree also revealed plans to close about 600 Family Dollar locations this year, with an additional 400 closures of Family Dollar and Dollar Tree stores expected as leases end over the coming years. This strategy reflects changes in consumer demographics and shopping preferences, with an increasing number of higher-income shoppers frequenting the stores.
Dollar Tree’s expansion of its multi-price assortment will see items ranging from $1.50 to $7, including higher-priced food, pet, and personal care products. CEO Rick Dreiling explained that the adjustments would allow the stores to offer more varied products, catering to a broader customer base seeking value at slightly higher price points.
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