Dollar Tree Hauls 2022 (2024)

FAQs

Is the Dollar Tree raising the price cap at its stores to $7? ›

How much more will Dollar Tree prices be? The price cap on items at Dollar Tree stores will now be $7. In 2021, the company raised the base price of items from $1 to $1.25. The cap was also raised in June 2021 to $5 an item.

1990s. Early in the 1990s, K&K Toys was sold to KB Toys, a Melville Corp., and all assets were used to expand dollar stores. We underwent a name change to Dollar Tree Stores in 1994.

Although many items available at your local Dollar Tree, like personal care, food and beverage items, will see a new cap price of $7, up from a max price ceiling of $5 set in June 2023, not all items will be affected by this increase. The vast majority of items will remain priced at $1.25.

Our product assortments are planned to offer the greatest value to the customer for $1.00 and to do so at a cost that meets our merchandise margin threshold. We utilize this strategy of ever-changing assortments to our advantage. Our customers have grown to expect that there is always something new at Dollar Tree.

Dollar Tree is yet again not sticking to the dollar theme in its name. The company announced last month that it would be increasing the prices on items again. The official prices announced were a minimum of $1.50.

Food, pet supplies and personal care items will be among the products to receive a price increase, although the rising prices won't apply to everything. Dreiling said the “vast majority” or products sold in Dollar Tree stores will remain at its “entry-level fixed price point.”

Dollar Tree expects adjusted profit for fiscal 2024 to be between $6.50 and $7 per share, the midpoint of which is below LSEG estimates of $6.89. It said its outlook reflects increased transportation costs related to loss of a distribution center in Oklahoma due to a tornado.

This shift allows the company to offer a broader range of products, including larger or higher-quality items that may not be feasible to sell at the one-dollar price point. Despite the inclusion of items priced above one dollar, Dollar Tree has retained its brand name for continuity and recognition among consumers.

We've added Dollar Tree Plus sections to over 5,000 of our stores which provide customers with even greater deals at the $3 and $5 price points. We will continue to expand the Plus assortment to even more stores in the coming years.

Dollar Tree on Wednesday said it plans to close nearly 1,000 stores over the next several years, after disclosing significant losses in its latest earnings report. The discount store chain lost $1.7 billion in the fourth quarter, down sharply from earnings of $452.2 million a year ago.

What is the Dollar Tree winner strategy? ›

Dollar Tree is implementing a “multi-price” strategy in which it will sell a greater variety of products with the aim of winning over new customers. Over the past year, the retailer has sold groceries that cost $3 to $5. Those goods will be complemented this year by 300 items that cost up to $7 across 3,000 stores.

Dollar General is the largest dollar store operator both in terms of annual sales (more than $34 billion in 2021) and total store count (some 18,000 locations in 46 states).

He also noted that most of Dollar Tree's new shoppers in 2023 came from households earning more than $125,000 per year. “This year, across 3,000 stores, we expect to expand our multi-price assortment by over 300 items at price points ranging from $1.50 to $7,” Dreiling said.

By implementing this price adjustment, Dollar Tree aims to address the challenges posed by increasing expenses while maintaining competitiveness in the market. The announcement of Dollar Tree's price hike has also drawn scrutiny.

Stock Price Forecast

The 20 analysts with 12-month price forecasts for Dollar Tree stock have an average target of 142.7, with a low estimate of 112 and a high estimate of 170. The average target predicts an increase of 47.49% from the current stock price of 96.75.

In 2021, Dollar Tree caused an uproar when it raised its standard price from $1, as the store name implies, to $1.25. The retail giant then rolled back its prices to $1 in 2023, a move that coincided with cooling inflation.