Brace yourself, Dollar Tree’s prices are climbing.
According to USA Today, the discount retail chain announced plans to increase its price cap to $7 during its fourth quarter earnings call.
"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 Dollar Tree CEO Rick Dreiling on the March 13 call, per USA Today.
The adjustment comes after a previous cap of $5 the company set in June. In 2021, the store’s base price was permanently raised to $1.25.
Higher priced items are said to include food, pet items, and personal care products. Although not all items will hit the $7 cap, the company said they hoped to integrate multi-price merchandise into its stores more extensively.
"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," Dreiling added.
The CEO noted that customers in higher income brackets are visiting the store.
"The fastest-growing demographic is north of $125,000 a year in income," said Dreiling. "It's not like the Northeast is strong and the West is weak. That boat is lifting pretty even all the way up."
The discount retailer also shared plans to close around 600 of its Family Dollar locations this year and roughly 400 more as leases expire.
