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Dollar Tree is Not What it Used to Be

I’m sure many of you remember the glory days of Dollar Tree - when everything in the store was just $1. However, recent news has shown that Dollar Tree is raising its prices; items are getting as high as $7.

On March 13, 2024, Dollar Tree CEO Rick Dreiling announced that they expect to add over 300 items to Dollar Tree stores with price points ranging from $1.50 to $7.

Timeline

Dollar Tree’s history dates all the way back to 1986, when the first Dollar Tree was opened, except back then, the store was called Only $1.00. In 1993, the name was changed to Dollar Tree, even though everything remained $1. In 2015, the Dollar Tree company bought Family Dollar in order to grow its customer base. In 2019, Dollar Tree added Dollar Tree Plus sections to several stores in the United States. Dollar Tree Plus is essentially a Dollar Tree but with an added section of better quality items at $3 and $5 price points. So it’s kind of like a 5 Below or a Dollar General. In 2022, Dollar Tree changed its base price of EVERYTHING to $1.25. This was its first price change in over 36 years. Did you do the math? Yep, you’re right. That means it was Dollar Tree’s first price change EVER. But it certainly wasn’t the last. On March 13, 2024, Dollar Tree CEO Rick Dreiling announced that they expect to add over 300 items to Dollar Tree stores with price points ranging from $1.50 to $7.


Why are Prices Changing?

When everything in the Dollar Tree was raised to $1.25, that was because all prices were being inflated. Inflation is the economic increase in prices and fall in purchasing value. This occurs due to supply chain issues, consumer demand, and economic stimulus from the pandemic (juniors and underclassmen, you guys will all get to learn about fun stuff like this in Personal Finance :)). But this new change for 2024 isn’t because of inflation - Dreiling stated that “this expanded assortment will offer Dollar Tree shoppers a wider range of choices across a variety of categories.” He also added that “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.” Dollar Tree will also be installing price scanners in many stores to check the prices on items. So, really, Dollar Tree isn’t changing many of the prices on items they already carry, but adding more items that are priced higher.


Adding and Subtracting Stores

But that’s not all Dollar Tree has been working on for this year. It has been announced that in 2024, 30 Dollar Tree locations will close and 600 Family Dollar locations will close as well. Family Dollar has been needing to close down stores to save money after a recent rat infestation in the warehouse cost them $40 million. In the past, Family Dollar has also been under scrutiny for safety issues, so they are in major trouble and are fighting to find a solution. This all ties in with Dollar Tree because the two businesses are owned by the same company. But with Dollar Tree Plus becoming new and popular, the company expects to have at least 5,000 Dollar Tree Plus stores by the end of 2024. Their new items will also be available to purchase online. 


There have been many people on social media and local news that have strong opinions about Dollar Tree’s new expansion and price changes. What do you think? Is Dollar Tree even worth it anymore if everything is no longer just a dollar? Dollar Tree has officially morphed into being just a regular dollar store like Dollar General and Family Dollar. The glory days of Dollar Tree are sadly over.


But maybe someday it will make a comeback.


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Great Article!

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