Is Dollar Tree abandoning its $1.00 pricing?


Dollar Tree is going through a lot of changes at the moment.

The upheaval includes closing down hundreds of stores and — gasp — even considering selling some items for $1.50 or $2.

RELATED: No one will believe you paid $1 for these Dollar Tree finds

Will $1 prices become a thing of the past at Dollar Tree?

According to a report in the South Florida Sun Sentinel, Dollar Tree has decided to try additional price points like $1.50 or $2 in an effort to remain profitable after being pressured by some investors.

“Testing new initiatives is an essential component of the Company’s ability to evolve and provide the best customer experience, including multi-price point testing, which has been done on prior occasions,” the company said in a recent earnings release.

But don’t worry, it has no plans to abandon the $1 price point entirely.

“The Dollar Tree banner has one of the most unique, differentiated and defensible brand concepts in all of value retail,” the company notes. “The one-dollar fixed-price point has been a critical element of Dollar Tree’s success, generating deep customer loyalty and strong historical performance.”

No word yet on exactly which stores will feature increase pricing. It will likely be at stores served by the company’s new joint Family Dollar/Dollar Tree distribution centers.

Clark’s take: Dollar Tree has been shrinking sizes to keep prices low

Dollar Tree has sometimes dealt with trying to keep profits high in the past by shrinking product size, but keeping the price the same. That’s helped them keep the appeal of their legacy price point, according to Clark Howard.

“Let’s face it: You don’t have a brand if you have to become ‘Two Dollar Tree!'” the consumer expert jokes.

Four years ago, the company bought competitor Family Dollar, which sells at a variety of price points.


Now that brand is ailing and Dollar Tree will close up to 390 Family Dollar stores this year. The company will also turn some 200+ Family Dollars into Dollar Trees during 2019.

Whether Dollar Tree continues to be known as the store where “Everything’s $1” remains to be seen.

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