Many shoppers frequent dollar stores for their low prices and convenience. However, one discount chain is raising prices…again.
In a recent earnings call, Dollar Tree announced that shoppers can expect to see higher prices this year, with over 300 items increasing to $7 in 3,000 stores nationwide. The retailer’s full suite of products will now range in price from $1.50 to $7.
CEO Rick Dreiling said that the decision to raise prices allows the retailer to diversify its offerings to shoppers, getting new products on shelves.
“This expanded assortment will offer Dollar Tree shoppers a wider range of choices across a variety of categories,” Dreiling said in the call. “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.”
“This is the next exciting chapter of the Dollar Tree value story: new items, more choices, and more savings.”
A rocky year for Dollar Tree
This isn’t the first time Dollar Tree has announced a price hike. In 2022, the company raised prices from $1 to $1.25 – a 25% price increase. Then, last year, another price increase came when the majority of prices went up to $1.50, while others went up to $3 and $5.
Now, the news of this most recent increase comes not long after the retailer’s sister company, Family Dollar, announced the impending closure of nearly 1,000 stores across the country. The company explained that changing trends in the retail industry are at the root of its struggles, claiming that fewer shoppers are choosing dollar stores to spend their extra money.
On top of that, Dollar Tree was hit with a nearly $42 million fine after officials found a rodent-infested warehouse in West Memphis, Ark. Everything from cosmetics to food was affected by the unsanitary conditions, and after pleading guilty, the company received the largest fine ever levied in a food safety case.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-03-20 11:16:01
