Dollar Tree will raise the maximum price to $7 in-store

Dollar Tree has announced a $7 price cap for its locations during its fourth quarter earnings call, following a $5 ceiling established in June, according to Yahoo Finance.

Earlier this month, during its fourth quarter earnings call, discount retail behemoth Dollar Tree announced that it will be raising the price cap in its locations to $7. As per Yahoo Finance, a $5 ceiling was established in June. The corporation increased the item's base price to $1.25 in 2021. Food, pet supplies, and personal hygiene products will be among the more expensive items; however, not all of them will fall within the $7 price cap.

During the conference call, Dollar Tree representatives mentioned that their clientele was becoming more diverse in terms of income levels. The observation aligns with current patterns in the low-cost retail sector.

According to The Wall Street Journal, InMarket, a company that monitors retail traffic, observed a 4% average rise in dollar store visits by customers earning over $100,000 during the second half of 2022 and 2023. 

During the earnings call, the firm said that it would close over 600 Family Dollar shops this year. In the press release and conference call, the firm also disclosed that about 400 Family Dollar and Dollar Tree stores would close over the next few years due to lease expiration. According to the company, Dollar Tree opened 641 locations in the previous fiscal year, including 219 in its fourth quarter, which concluded in early February.