Discount chain Dollar Tree has announced that it will increase the maximum price to $7 for some items in the store.
During a recent fourth quarter earnings call, Dollar Tree CEO Rick Dreiling said, “This year, across 3,000 stores, we plan to expand our multi-priced assortment to more than 300 items priced from $1.50 and $7″.
Due to ongoing inflation under the Biden administration, Dollar Tree was previously forced to raise prices by $1 to $1.25 in 2021.
The $7 price cap will be implemented in the fourth quarter, and a $5 price cap will be temporarily set in early June.
Dollar Tree’s announcement comes just weeks after the discount chain announced it would close up to 1,000 stores at its sister chain, Family Dollar.
Dollar Tree says it will raise its maximum price to $7 pic.twitter.com/HBEQqpMAmN
— Dexerto (@Dexerto) March 26, 2024
According to USA Today:
Discount retail giant Dollar Tree said it will raise the price limit at its stores to $7 in its fourth-quarter earnings call earlier this month.
“This year, across 3,000 stores, we plan to expand our multi-priced assortment of more than 300 items at prices ranging from $1.50 to $7,” Dollar Tree CEO Rick Dreiling said on the March 13 call .
According to Yahoo Finance, a $5 limit was set in June. In 2021 the company increased the base price of the items to $1.25.
Higher cost items will include food, pet and personal care items, although not all items will be priced at the $7 cap.
As The Gateway Pundit previously reported, Dollar Tree, which owns Family Dollar, announced it will close 600 Family Dollar stores in the first half of 2024 and 370 stores within the next few years.
Dollar Tree also announced it will close 30 stores as their leases expire.
The news comes as the discount chain has faced difficulty maintaining profits due to inflation and faced significant fines for violating US product safety standards after Family Dollar warehouses were found to be full of live and dead rodents.
LIGHT:
Family Dollar and Dollar Tree plan to close 1,000 stores