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Dollar Tree raises price cap to $7 as wealthier shoppers roam aisles

Dollar Tree will raise its price cap to $7 as it experiences an influx of shoppers earning yearly salaries over $125,000, company officials said.

“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,” Dollar Tree CEO Rick Dreiling said, according to a report.

An increase in the discount giant’s price cap comes only a few years after Dollar Tree increased the base price of items to $1.25 and months after the price cap was increased to $5, the report noted.

Personal care, pet products, foods, and snacks are anticipated to be the items nearing the $7 figure as wealthier shoppers fill the aisles.

“Dollar Tree added 3.4 million new customers in 2023, mostly from households earning over $125,000 a year,” according to Dreiling. “The fastest-growing demographic is north of $125,000 a year in income.”

“It’s not like the Northeast is strong and the West is weak. That boat is lifting pretty even all the way up.”

Despite an increase in more well-off shoppers, Dollar Tree netted a $1.71 billion loss at the end of the fiscal quarter on Feb. 3, and the chain has announced the closure of around 1,000 stores.

In 2024, $31 billion to $32 billion are the expected sales figures, the report noted.

-Washington Examiner

 

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