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Discount chain Dollar Tree has announced it will raise its price cap to $7 for some store items.
During a recent fourth-quarter earnings call, CEO of Dollar Tree Rick Dreiling shared, “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.”
Due to the ongoing inflation under the Biden administration, Dollar Tree was previously forced to raise their prices from $1 to $1.25 in 2021.
The $7 price cap will be implemented in the fourth quarter, and at the beginning of June, a $5 price cap will be temporarily set.
Dollar Tree’s announcement comes just weeks after the discount chain announced it would close up to 1,000 stores of its sister chain, Family Dollar.
Dollar Tree says they will raise their max price to $7 pic.twitter.com/HBEQqpMAmN
— Dexerto (@Dexerto) March 26, 2024
Per USA Today:
Discount retail giant Dollar Tree said that it would raise the price cap in its stores to $7 in its fourth quarter earnings call earlier this month.
“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 in the call on March 13.
A $5 cap was set in June, according to Yahoo Finance. In 2021 the company raised the base price of items to $1.25.
The higher cost items will include food, pet and personal care items, though not all items will be at the $7 price cap.
As The Gateway Pundit previously reported, Dollar Tree, which owns Family Dollar, announced it would close 600 Family Dollar stores in the first half of 2024 and 370 stores within the next several years.
Dollar Tree also announced they will close 30 stores as their leases expire.
The news comes as the discount chain has faced difficulties maintaining profits due to inflation and facing significant fines for violating U.S. product safety standards after it was discovered Family Dollar warehouses were filled with live and dead rodents.
READ:
Family Dollar and Dollar Tree Plan to Shut Down 1,000 Stores
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