For the first time since its founding two decades ago, Dollar Tree
"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," Dollar Tree CEO Michael Witynski said in a statement.
In July of this year, inflation in the U.S. reached the highest level seen in three decades. Simply put, $1 spent in 2021 won't get you as much as it did a year ago. By raising some prices, Dollar Tree hopes to be able to include more variety despite that inflation.
According to Witynski, the company practices a "test-and-learn" approach, and it will be monitoring customer reactions to the broader change. If there is a positive response, customers may see $1.25 to $1.50 items throughout store shelves.
Several hundred of Dollar Tree's nearly 8,000 locations have been testing the higher price range items for roughly two years. These locations, known as "Dollar Tree Plus" stores, feature prices of up to $5. The higher-ticket products include arts and crafts, home decors, seasonal items, apparel, and sports items.
J.P. Morgan
The company hopes to have 500 Dollar Tree Plus locations by the end of this year, with another 1,500 being added in 2021. By the end of 2024, the company plans to have at least 5,000 Dollar Tree Plus stores.
At the opening bell on Wednesday, September 29, Dollar Tree Inc. shares jumped by 13%. Dollar Tree Inc. also owns Family Dollar and Dollar Tree Canada. The company also has plans to expand its combination Dollar Tree and Family Dollar stores from 105 to 500 by the end of next year, and to 3,000 over the coming years.
