Dollar Tree’s prices are no longer just $1, as the chain aims to attract higher-income shoppers. In 2021, the store raised prices to $1.25, introduced $5 items in 2023, and expanded to $7 items in 2024. By 2025, key items quietly increased to $1.50, reflecting persistent inflation challenges.

Despite its multi-price strategy to appeal to a broader audience, Dollar Tree risks alienating its core customer base. The move away from consistent $1 pricing could lead to revenue loss in the long run. The company’s acquisition of 99 Cents Only Stores also faced challenges, with a 38.8% drop in visits to converted locations in 2025.

Dollar Tree’s strategy to cater to both higher-income shoppers and budget-conscious consumers may be at odds. While the chain’s expansion and acquisition efforts aim to increase foot traffic and compete in the discount space, it faces challenges in retaining its traditional customer base. The return to a lower price point may be a positive step for consumer sentiment.

Read more at Yahoo Finance: Dollar Tree squanders huge opportunity with customers