Your next trip to the Dollar Tree might be a little more expensive than in the past.
The company said it would raise its price cap to $7 in 3,000 stores across the country, the company announced during a fourth-quarter earnings conference call in March.
In addition to an increase in the price cap, the base price for more than 300 in-store items will be increased from $1.25 to $1.50 as part of a “multiple price expansion strategy.”
Affected items could include food and snacks, drinks, pet care, personal care and more. However, other items will remain at $1.25, CEO Rick Dreiling said on the March 13 call.
“Even as our multi-price assortment expands over time, the vast majority of items sold in Dollar Tree stores will remain at our entry-level fixed price,” Dreiling said. “Over time, you will also see us fully integrate multi-price higher into our stores so our shoppers will find $5 bags of dog food alongside our traditional $1.25 pet treats and toys $, and our $3 bags of candy will be in the candy aisle.
According to Dreiling, the price changes should take place in 2024, although it is not known when.
On the call, officials also hinted at even higher price caps on the horizon, noting that a $10 target price cap was previously on the table.
“Now when it comes to the $10, we continue to believe in the $10 goal that we announced, well, I guess about a year ago, and we continue to move toward that goal,” said Dreiling, adding that it was “a little difficult to determine” when a $10 target would be implemented.
“We still believe in the goal, but we think the path forward is to get to $7 in 2024, and we’re intently focused on that,” Dreiling said on the call. “But again, we want a positive 2024. And then as we go through 2024 and 25, we’ll give you a better handle on the $10.”
The move comes after the company announced plans to close approximately 600 Family Dollar stores in the first half of this year, as well as 370 Family Dollar stores and 30 Dollar Tree stores over the next several years.
Dollar Tree purchased Family Dollar in 2015 for more than $8 billion.
NBC Chicago
