Dollar Tree’s “next exciting chapter” might have an element of surprise for shoppers.
During its earnings call last week, the discount retailer announced it will be offering products that will cost as much as $7.
In 2023, Dollar Tree made the move to elevate prices to $3 and $5 while still offering items at $1.25. The cost increase will allow for an expansion of product selection.
“This expanded assortment will offer Dollar Tree shoppers a wider range of choices across a variety of categories,” said CEO Rick Dreiling during Dollar Tree’s fourth quarter earnings call. Dreiling added most items will stay at $1.25. “Over time, you will also see us fully integrate multi-price merchandise more into our stores… .
“This is the next exciting chapter of the Dollar Tree value story: new items, more choices, and more savings.”
The price increase also comes at a time when the Dollar Tree and its subsidiary, Family Dollar, are struggling. The company reported a fourth quarter net loss of $1.71 billion and a net loss of $998.4 million for fiscal year 2023.
In the wake of the poor financial showing Dollar Tree announced it will be closing 1,000 stores in 2024, including 600 Family Dollar stores in the coming weeks.
In February, Family Dollar agreed to pay over $41 million in fines after pleading guilty to holding food, drugs, medical devices, and cosmetics under unsanitary conditions at its West Memphis, Ark., distribution center.
