The days of buying everything for just $1 at the Dollar Tree may soon be a thing of the past.
The retailer recently announced it will begin adding items that cost $3 and $5 at all its Combo and Dollar Tree Plus stores and begin testing other price points also above $1 at select Dollar Tree locations.
This does not mean that all items will now be more than $1. It does mean, however, that you will need to pay attention to price tags, as you can no longer assume something will cost $1 at checkout — or in some cases, like the retailer’s greeting cards, even less.
“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,” Michael Witynski, Dollar Tree’s president and chief executive officer, said in a press release. “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.”
While the company did not specifically reveal the amount that prices may change, Witynski stated that Dollar Tree will continue to protect the promise of “great value” for what customers spend, regardless of if the price is $1, $1.25 or $1.50.
The changes come after Dollar Tree, Inc. slashed its profit forecast for the year, citing higher freight costs as the reason. While retailers like Costco have also been impacted by rising shipping costs, Witynski says Dollar Tree is highly sensitive to freight costs.
He also said he doesn’t expect the strained shipping conditions to be permanent but it’s unclear if that means prices will dip back down once everything evens out.
Rising prices aside, the retailer also announced it is opening 1,500 more standard stores in 2022 and at least 5,000 more Dollar Tree Plus stores by the end of 2024.
Dollar Tree Plus are locations that offer many items priced between $3-$5, similar to the business model of competitor Five Below.
The company also plans to expand its list of Combo stores by adding a whopping 3,000 of them over the next several years. There are currently only 105 of them around the country. These Combo stores, if you’re unfamiliar, are a combination of both Dollar Tree and Family Dollar, selling a mix of merchandise with some price points already above $1.
Will you continue to shop at Dollar Tree even if the prices go up a bit?