Dollar Tree shoppers are in for a surprise soon.
The company revealed in a recent earnings call that it's going to introduce hundreds of new products. These items will have a new maximum price tag of $7. "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," CEO Rick Dreiling stated. He emphasized that most items will still be sold at the entry-level price.
The increase to a $7 limit is a significant change from the $5 cap set in June 2023. Before that, the base price was bumped to $1.25 in 2021.
Dreiling explained the hike is for expanding the product range. Customers will see varied pricing in stores, like $5 dog food alongside $1.25 pet treats and $3 candy bags in their usual spots.
This price adjustment follows the announcement of over 1,000 Family Dollar store closures nationwide. Dollar Tree plans to shut down approximately 600 Family Dollar stores soon and more in the coming years.
Dollar Tree's acquisition of Family Dollar in 2015 for over $8 billion hasn't been smooth. The company has struggled to integrate Family Dollar into its operations.
Neil Saunders, a managing director, commented on the situation. "This dramatic cull is the coup de grâce in the rather botched acquisition of the Family Dollar chain, which has caused Dollar Tree nothing but hassle since it was completed back in 2015," he wrote. Saunders highlighted that nearly a decade later, Dollar Tree is still dealing with the fallout.