Dollar Tree will raise the maximum price in stores to $7

Dollar Tree, the famous chain of low-priced stores, will increase the price range on its products. up to $7 dollars,

The decision, disclosed to shareholders during its fourth-quarter earnings call earlier this month, represents a significant adjustment in the company’s pricing strategy.

Dollar Tree, which set the $5 limit in June and previously raised the base price of its items to $1.25 in 2021, is now looking to expand its assortment of products at different price points.

“This year, across 3,000 stores, we expect to expand our multi-value assortment to more than 300 items, with prices They range between $1.50 and $7 dollars” Dollar Tree CEO Rick Dreiling said during the conference call on March 13.

Higher priced products to be included will include food, personal care and pet items, although not all products will meet the new price range.

Dreiling noted that in the future, Dollar Tree stores will offer products at different price points.

This means that customers, for example, will see $5 dog food and pet toys priced at $1.25 near the treats, as well as $3 bags of candy in the treats section.

A notable fact is Dollar Tree’s tendency to attract customers with high purchasing power.

“The fastest growing demographic has income Over $125,000 Annually,’ Dreiling said.

This trend reflects a broader phenomenon in the discount sector, where higher-income consumers are looking for affordable options.

According to data from InMarket, a company that tracks retail traffic, visits to dollar stores by consumers earning more than $100,000 are expected to increase by an average of 4% between the second half of 2022 and 2023.

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