Dollar Tree stores to introduce merchandise with price tags up to $7

Dollar Tree customers will commencement to spot immoderate items carrying $7 value tags connected nan discount retailer’s shelves later this year. 

That will beryllium nan lawsuit for 3,000 stores, wherever CEO Rick Dreiling said Dollar Tree "expect[s] to grow our multi-price assortment by complete 300 items astatine value points ranging from $1.50 to $7."

The company, which besides operates nan Family Dollar brand, has been introducing products that travel astatine costs supra its $1.25 value floor. The precocious limit had been $5 anterior to nan upcoming initiative, according to reports.

The Dollar Tree motion hangs extracurricular a Dollar Tree shop connected Nov. 23, 2021, successful Los Angeles, California. ((Photo by Mario Tama/Getty Images) / Getty Images)

"But moreover arsenic our multi-price assortment expands complete time, nan immense mostly of nan items sold successful Dollar Tree stores will stay astatine our entry-level fixed value point," Dreiling said of nan caller $7 precocious limit. "Over time, you will besides spot america afloat merge multi-price merchandise much into our stores truthful our shoppers will find $5 bags of canine nutrient adjacent to our accepted $1.25 pet treats and toys, and our $3 bags of candy will beryllium recovered successful nan candy aisle."

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Dollar Tree has been seeking to "present a much applicable assortment" to consumers astatine varying value levels, according to nan CEO.

A Dollar Tree shop successful Miami, Florida. (Photo by Joe Raedle/Getty Images / Getty Images)

Under nan multi-price constituent strategy, Dreiling told analysts and investors that Dollar Tree has antecedently had complete 6,500 locations astir nan state trading stiff and refrigerated items astatine $3 to $5 value points. The marque will proceed to grow those offerings, according to nan CEO.

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About 5,000 Dollar Tree locations besides began offering $3 and $5 "center-store merchandise" past year, pinch 2,000 much slated to do nan aforesaid successful 2024, he said.

Dreiling besides said that Dollar Tree’s preamble of different value levels and much assortment has helped tie much higher-income shoppers. Those pinch incomes above $125,000 were nan "fastest-growing demographic" for Dollar Tree, he said.

A Dollar Tree shop successful Streator, Illinois, connected Oct. 15, 2022.  ((Photo by Beata Zawrzel/NurPhoto via Getty Images) / Getty Images)

Data from Numerator recovered that customers thin to sojourn Dollar Tree astir 20 times a year, spending $281 during those visits.

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The institution has been moving to revamp its 2 brands done various initiatives. For Family Dollar, 1 of those will see shuttering complete 900 locations for "optimization."

Dollar Tree brought successful $30.6 cardinal successful full revenues complete fiscal 2023, marking an 8% summation twelvemonth complete year. Meanwhile, it saw a nett nonaccomplishment of $998.4 cardinal for nan year.