With a name like “Dollar Tree,” it’s easy to assume that everything the store sells costs just one dollar. For 35 years, that was true, but times are changing, and the retailer plans to increase prices.
Dollar Tree has been testing the idea of selling products in their stores for more than one dollar. At Dollar Tree Plus stores, the low price retailer has tested selling products for prices such as three dollars and five dollars. While that still sounds inexpensive, it’s quite a jump in price from one dollar.
Apparently, customers have not been turned off by the price increases. In fact, the Dollar Tree Plus stores have done fairly well, so well in fact that Dollar Tree plans to make permanent price increases across thousands of stores.
In a press release, Dollar Tree’s President and Chief Executive Officer, Michael Witynski, explained, “For decades, our customers have enjoyed the ‘thrill-of-the-hunt’ for value at one dollar – and we remain committed to that core proposition – but many are telling us that they also want a broader product assortment when they come to shop. We believe testing additional price points above $1 for Dollar Tree product will enable us over time to expand our assortments, introduce new products and meet more of our customers’ everyday needs.” He added, “We listen to our customers and believe it will make shopping with us an even better experience.”
Witynski concluded his statement by stating, “Our brand promise is that customers get great value for what they spend at Dollar Tree. We will continue to be fiercely protective of that promise, regardless of the price point, whether it is $1.00, $1.25, $1.50.”
By the end of 2021, Dollar Tree will have approximately 500 Dollar Tree Plus stores. By the end of 2022, they plan to add an additional 1500 Dollar Tree Plus locations. By the end of 2024, the plan is to have at least 5,000 Dollar Tree plus stores.
While there still may be items in the store that cost only one dollar, expect most items to be more expensive. According to CNN, during a quarterly earnings release, Dollar Tree announced that they would be permanently increasing the prices of most items from $1 to $1.25. That is still quite inexpensive, but at the same time, it’s a 25% markup, which is quite significant.
Is your local Dollar Tree a Dollar Tree Plus store? Do you think it makes sense for Dollar Tree to increase prices beyond one dollar? Would you be willing to pay more than a dollar for items at Dollar Tree?