Dollar Tree is making sweeping changes in 2025 that affect what shoppers see on shelves—and how much they pay. From pricing shifts to new store formats, here’s everything you need to know about the retailer’s evolving strategy this year.
New multi-price strategy: Items up to $7
Known for its fixed $1.25 price point, Dollar Tree is now embracing a multi-price strategy in thousands of stores across the U.S. In 2025, shoppers will see items priced at $3, $5, and even $7 in categories like frozen food, cleaning supplies, pet products, and health and beauty.
The company says this move allows them to offer larger sizes, national brands, and more variety while staying competitive in a changing retail market.
Store format overhaul: Transition to the “3.0 model”
To accommodate the new price tiers, Dollar Tree is revamping its stores. In 2025, the company plans to convert 2,000 stores to its “3.0 model” and open 300 brand-new locations.
This upgraded layout includes:
- Wider aisles and better signage for easier navigation
- Clearly labeled multi-price sections
- Expanded shelf space for frozen and refrigerated goods
These changes are designed to give shoppers a more modern and flexible discount shopping experience.
Product assortment changes: What’s new and what’s gone
With a shift in pricing comes a shift in what’s available.
What’s new:
- Larger quantities and name-brand items
- Expanded seasonal selections (e.g., holiday décor, garden tools)
- New categories like small electronics and cookware
What’s being phased out:
- Some traditional $1.25 items, especially low-margin or slower sellers
- Smaller product sizes or duplicated SKUs
- Select food items that no longer meet cost thresholds
Dollar Tree has said the changes are necessary to adapt to higher costs and inflation while giving customers more perceived value per dollar.
How the changes affect shoppers
For longtime Dollar Tree shoppers, the biggest change is the growing presence of multi-price products throughout the store.
Here’s what to expect:
- $1.25 items will still be available, but likely in fewer aisles
- Price stickers or signage will indicate if an item is above $1.25
- Customers can expect more brand-name goods than before
Shoppers should pay close attention to shelf tags to avoid surprises at checkout, especially as pricing becomes more variable.
Why Dollar Tree is making these changes
Rising labor, supply chain, and product costs have made it difficult for Dollar Tree to maintain a single price point without reducing product quality. By expanding price options, the company is:
- Increasing store profitability
- Competing with chains like Walmart, Aldi, and Five Below
- Offering more flexibility in product sourcing and size
Executives have called 2025 a “transition year” as the brand evolves to meet new shopper expectations.
What’s next for Dollar Tree in 2025?
Looking ahead, Dollar Tree plans to roll out more hybrid stores that blend elements of Dollar Tree and Family Dollar (which it owns). These stores will offer broader selections, more frozen foods, and convenience-driven layouts.
The company is also preparing for potential impacts from global tariffs and inflation pressures, which could influence future pricing decisions.
Key takeaways
- Dollar Tree is introducing more items priced between $3 and $7 in 2025.
- The new “3.0” store format will roll out to thousands of locations.
- Shoppers will see more variety, especially in food and home goods.
- Some $1.25 items will be phased out, but not eliminated entirely.
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