The days of dollar stores may soon be a thing of the past after the discount retail giant Dollar Tree announced it would raise the price cap in its stores again.
The price hike also comes at a time when Family Dollars and Dollar Tree stores will begin closing across the country. The company announced it would close approximately 600 locations under the Family Dollar brand this year alone. In the coming years, approximately 400 Family Dollar and Dollar Tree locations will close as leases expire.
So how much more are you going to have to pay at Dollar Tree?
How much more will Dollar Tree prices be?
The price cap on items at Dollar Tree stores will now be $7. In 2021, the company raised the base price of items from $1 to $1.25. The cap was also raised in June 2021 to $5 an item.
When is Dollar Tree raising its prices?
The exact date hasn't been announced. Dollar Tree's CEO did say in March the increase will start in 2024 across all stores.
"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 TreeCEO Rick Dreiling said in the call on March 13.
What items will cost more at Dollar Tree?
The higher cost items will include food, pet and personal care items, though not all items will be at the $7 price cap.
"Over time, you will also see us fully integrate multi-price merchandise more into our stores so our shoppers will find $5 bags of dog food next to our traditional $1.25 pet treats and toys, and our $3 bags of candy will be found in the candy aisle," Dreiling said.
Dollar Tree sees traffic from higher-income consumers
Dollar Tree executives said that the demographics of their customers trended towards higher income brackets, according to USA TODAY.
"The fastest-growing demographic is north of $125,000 a year in income," Dreiling said of a trend the company sees nationwide. "It's not like the Northeast is strong and the West is weak. That boat is lifting pretty even all the way up."
How many Dollar Trees are in Des Moines?
There are six Dollar Trees in Des Moines and 60 other cities across Iowa, according to its website. Family Dollar has five locations in Des Moines and operates in 47 other Iowa cities, according to its website.
Reporting contributed by James Powel and Anthony Robledo.
Kate Kealey is a general assignment reporter for the Register. Reach her atkkealey@registermedia.comor follow her on Twitter at @Kkealey17.
