Dollar Tree continues its expansion into prices above the one that its name is based on.
The discounter said that it will start testing sales of products that cost more than $1 in select Dollar Tree stores. It also will also add more $1-plus items at its new Combo and Dollar Tree Plus stores. Dollar Tree said its decision was based on "positive customer reaction and the success" of its Combo and Dollar Tree Plus store formats, both of which already sell some products at the higher price points of $3 and $5.
Dollar Tree’s move to sell more products above $1 comes as inflation and supply chain disruption is pushing up the cost of many goods.
“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,” said Michael Witynski, president and CEO. “We believe testing additional price points above $1 for Dollar Tree product will enable us over time to expand our assortments, introduce new products and meet more of our customers’ everyday needs. We are a ‘test-and-learn’ organization which is what we are doing with this new initiative.”
Dollar Tree noted it is on track in 2021 to have 500 Dollar Tree Plus stores by fiscal year-end – offering an assortment of value-priced $1, $3, and $5 products. Another 1,500 stores are planned for fiscal 2022, with at least 5,000 Dollar Tree Plus stores expected by the end of fiscal 2024.
The company is also expanding its newest store format, the Combo store, which leverages the strengths of both its Dollar Tree and Family Dollar. It currently has 105 Combo stores and expects to add 400 locations in fiscal 2022, with the potential of up to 3,000 over the next several years.
Dollar Tree operated 15,865 stores across 48 states and five Canadian provinces as of July 31, 2021. Stores operate under the brands of Dollar Tree, Family Dollar, and Dollar Tree Canada.
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