Dollar Tree is making changes to its pricing strategy as it seeks to cater to a broader customer base. The discount store, known for its $1 price point, is now increasing its price ceiling to $7 in response to the growing number of six-figure income shoppers flocking to its stores.
According to Business Insider, this move comes after Dollar Tree previously raised its price point to $5 in June. However, CEO Rick Dreiling stated that the majority of items will still be offered at the $1.25 price point, with the aim of providing a more relevant assortment to customers.
Dreiling highlighted that the company’s new customers in 2023 mostly came from households with annual incomes exceeding $125,000. This shift in consumer demographics is further supported by a Morning Consult survey, which revealed that a higher percentage of six-figure income households are now shopping at dollar stores, with the figure rising from 39% to 45%.
The expanded product range at higher price points will include food and snacks, beverages, pet care, and personal care items. Additionally, Dollar Tree recently completed the rollout of frozen and refrigerated foods priced between $3 and $6 across its 6,500 stores.
On a separate note, Dollar Tree announced the closure of 1,000 Family Dollar stores, citing concerns over shoplifting at these locations.
