Dollar Tree made a pricing move shoppers have been asking for

Shopping astatine Dollar Tree utilized to beryllium reasonably predictable. You'd locomotion into the store, browse the inventory, and cognize successful your caput that nary substance what products you grabbed, you'd beryllium looking astatine paying $1 per item.

But the days of lone paying $1 astatine Dollar Tree are agelong gone. And there's a crushed for that.

Dollar Tree has been trying its hardest to people a wide scope of consumers.

These days, 10.3% of radical earning $100,000 oregon much store astatine Dollar Tree, according to CBS News, citing findings from GlobalData Retail. That's an summation from 5.6% of consumers earning $100,000 oregon much successful 2021.

But there's an casual mentation down that trend.

Higher-income shoppers person been forced to agelong their paychecks owed to persistent inflation. And Dollar Tree is trying its champion to cater to them.

During Dollar Tree’s astir caller net call, CEO Michael Creedon said, “Our exceptional worth proposition, including our increasing multi-price assortment, is resonating with our shoppers by helping them conscionable their needs and desires successful the budget-constrained situation that galore consumers find themselves successful today."

A wider scope of terms points mightiness marque consciousness for Dollar Tree astatine a clip erstwhile the institution is intelligibly trying to entreaty to higher-income shoppers. But successful expanding its assortment, the institution besides risks frustrating — and truthful alienating — a important chunk of its lawsuit base.

A large portion of Dollar Tree's worth proposition has agelong been pricing consistency. Ditching that strategy to pursuit higher-income customers is simply a determination that could outgo Dollar Tree a batch of gross successful the agelong run.

Related: Target sees displacement successful user behavior

• 2021: Dollar Tree raises its basal terms to $1.25.
  Source: Fortune

• 2023: Dollar Tree introduces galore $5 items into its lineup.
  Source: Retail Dive

• 2024: Dollar Tree expands inventory to see $7 items.
  Source: Fortune

• 2025: Dollar Tree softly raises prices connected cardinal items from $1.25 to $1.50.
  Source: Parade

Of course, Dollar Tree's multi-price strategy is expected to adhd worth for consumers, not dilute it. And higher-income shoppers mightiness spot things that way.

But for budget-conscious shoppers who are feeling squeezed financially, the added assortment whitethorn not play well, particularly if the store's astir appealing products are beyond what they tin afford.

In 2024, Dollar Tree acquired designation rights for 170 leases of 99 Cents Only Stores crossed a fig of states, aft the bankrupt concatenation liquidated its assets.