Dollar Tree Increases Price Cap

Discount grocer Dollar Tree has been gradually increasing the price ceiling of its products. Executive Chairman and CEO Rick Dreiling said recently that the new price cap on items will be $7, up from the $5 cap set last June, reports Business Insider.

The latest price modification is part of the retailer’s “multi-price point strategy” which endeavors to create a more “relevant assortment” for customers, said Dreiling. He added that most new customers in 2023 came from high-income households.

"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," Dreiling said. The higher-priced items include food and beverages; however, he added that the majority of offerings will remain at $1.25.

Last week, Dollar Tree announced that it missed market expectations for holiday-quarter sales, subsequently laying out plans to shutter 970 of its Family Dollar banner stores and 30 Dollar Tree locations.

"Our biggest problem right now is getting enough merchandise into the stores fast enough so the consumer can respond," said Dollar Tree CEO Rick Dreiling, adding that Family Dollar was continuing to be hurt by macroeconomic uncertainties. Full Story

Image: Dollar Tree