Dollar Tree Just Announced a Major Price Change — and Shoppers Are Furious
Items at the dollar store no longer just cost a dollar, but this isn’t news. Popular dollar stores such as Dollar General and Dollar Tree raised their prices to $1.25 over the past two years. Dollar Tree — and its subsidiary Family Dollar — also made the move to elevate some of their prices to $3 and $5 in 2023, all in an effort to expand the number of products they offer in stores. And now, during their fourth quarter earnings call, CEO Rick Dreiling announced the discount store will increase their price threshold to $7.
“This expanded assortment will offer Dollar Tree shoppers a wider range of choices across a variety of categories, including food and snacks, beverages, pet care, personal care, and more,” explains Dreiling during the call. “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.”
The news of this price increase is also followed by the news of Family Dollar shutting even more doors; the company will close 600 stores during the first half of the 2024 fiscal year, as well as an additional 370 closing when their leases expire.
Although this change does mean an expansion of offerings on shelves — like frozen and refrigerated items for $3, or bags of dog food for $5 — loyal customers aren’t too pleased about the price increase, and have taken to social media to voice their complaints.
The speculation started when customers noticed the added price scanners in stores. Why have a price scanner if everything’s the same price? After taking a closer look, videos circulated online displaying the price differences, showing food items like hamburger buns for $4 or sunscreen for $5. Some are even commenting on how their local dollar store is turning into the new Five Below.
@simplisticallyliving A new week of price increases at Dollar Tree! #dollartree #dollartreefinds #dollartreehaul #fyp #priceincrease #inflation #dollartreeprices ♬ original sound – brittanie
Will dollar stores like the Dollar Tree or Family Dollar still be the cheapest option for customers? Shoppers and employees are saying no, especially when you compare food prices. A can of beans costs $1.25 at Dollar Tree, but only $0.82 at Walmart.
“They are pricing themselves right out of business,” comments one shopper on a TikTok video. “Now I feel like they are taking advantage,” writes another. “Some of these prices are more than Walgreens.”