Giant discount retailer Dollar Tree has announced that it will raise the price cap in all its stores to $7.
According to USA Today, Dollar Tree CEO Rick Dreiling revealed the news.
“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.”
The previous cap was $5, set last June.
In 2021, the company increased its base item price to $1.25.
The more expensive items will include personal care, food, and pet supplies.
“Over time, you will also see us fully integrate multi-price merchandise more into our stores so 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.”
Dollar Tree’s Price Change Is Informed By High-Income Shoppers
The company’s executives revealed that their customers are increasingly higher-income.
“The fastest-growing demographic is north of $125,000 a year in income. It’s not like the Northeast is strong and the West is weak. That boat is lifting pretty even all the way up.”
Despite raising its prices, the company announced the closure of roughly 600 locations.
It will also shut down 400 Family Dollar and Dollar Tree stores over the coming years.
