Your next trip to the Dollar Tree may be a little more expensive than in the past.
The company announced it will be raising its price cap to $7 across 3,000 stores nationwide, the company said during a fourth-quarter earnings call in March.
In addition to an increase in the price cap, the base price for more than 300 items in-store will be raised from $1.25 to $1.50 as part of a "multi-price expansion strategy."
Impacted items could include food and snacks, beverages, pet care, personal care and more. Other items however, will remain at $1.25, CEO Rick Dreiling said during the March 13 call.
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"Even as our multi-price assortment expands over time, the vast majority of the items sold in Dollar Tree stores will remain at our entry-level fixed price point, Dreiling said. "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."
According to Dreiling, the price changes are expected to take place in 2024, though it wasn't clear when.
Officials during the call also hinted at even higher price caps on the horizon, noting that a target price cap of $10 was previously on the table.
"Now, in regards to the $10, we continue to believe in the $10 target that we announced, well, I guess about a year ago, and we're continuing to march toward that goal," Dreiling said, adding that it was "a little difficult to pinpoint" when a $10 target would be implemented.
"We still believe in the target, but we believe the path is to get to $7 in 2024, and we're intently focused on that," Dreiling said during the call. "But again, we want a positive 2024. And then as we move through '24 and '25, we'll give you more of a handle on the $10."
The move comes after the company announced plans to close about 600 Family Dollar stores in the first half of this year, along with 370 Family Dollar and 30 Dollar Tree stores over the next several years.
Dollar Tree bought Family Dollar in 2015 for more than $8 billion.
