Dollar Tree increases prices as high as $ 5: "It's our future"
A business manager said that "the difficult part" is already over.
Regarding purchasing good deals, you really can't beat the prices at dollar stores . Dollar Tree, in particular, is known to maintain the prices fairly close to the $ 1 bar - at least until 2021, when the company announced the New standard price would be $ 1.25. From now on, the reduction chain has shared that buyers will see even higher prices, some items selling up to $ 5. Read the rest to find out why the prices of dollars trees increase again.
Read this then: Communities are fighting against Dollar General and Dollar Tree - This is why .
The leaders say that "the difficult part" is over.
Dollar Tree extends its prices to include more items between $ 3 and 5, managers revealing other plans for "enlarged value assortment" in a Annual investor conference June 21st Winsight grocery business reported.
According to Dollar Tree CEO Rick Dreiling , the introduction of higher prices is a natural decision after its last price change.
"The difficult part has been made," said Dreiling. "This leap at $ 1.25 was painful, but this is done now, and it's time for us to capitalize on it."
Expect higher prices in additional stores.
The idea of introducing several prices has been underway for years. During a March 1st profit call , the leaders revealed that the company would add more " Multiple prices "At nearly 2,000 stores. AE0FCC31AE342FD3A1346EBB1F342FCB
This includes Dollar Tree Plus, a line of seasonal items, toys, clothing and other products sold at a higher price. The Dollar Tree Plus line is currently available in 2,915 stores, but according to a presentation Since the conference on June 21, Dollar Tree plans to extend the line to 1,350 more stores this year.
In addition, the retailer now has his goal on more expensive races. According to the presentation, $ 3, $ 4 and $ 5 of frozen food products have already been added to 3,935 stores, with plans to bring these products to 1,600 additional stores this year.
To illustrate the transition to the multiple point model, Dollar Tree used the example of its frozen products, the majority of which are still $ 1.25. These items generally occupy seven of freezers in stores, while only three freezers have 3, $ 4 and $ 5 of products.
But ultimately, there will be eight freezers with more expensive products, and only two with $ 1.25 items.
In relation: For more information, register for our daily newsletter .
The company has tested the brand's bread and ice cream.
According to the recent presentation, Dollar Tree has tested the sale of $ 3 brand bread and $ 5 brand ice cream. After success with customers, the two products are extended to more stores before the end of 2023.
Speaking of brand ice cream sales, Richard McNeely , Dollar Tree's merchandise director said the tests had "very positive results", Winsight grocery business reported.
"It is now at the time of being the most productive frozen door we have," added McNeely. "The same goes for the ice, because the bags of seven pounds of Dollar Tree are now sold for $ 2.
"We were about to lose the ice program at $ 1.25," said McNeely about his previous model for the sale of five -pound bags, which were tailor -made. "The seller did not want to do the article. They increased the price, and we had nowhere to go. So, by the way, the ice is in the top 50 every week. It is a key article for us, The customer is like it, and now it works at $ 2. "
The leaders say that higher prices are the "future" of Dollar Tree.
Dollar Tree works with consultants to identify the ideal price assortment for products, which Winsight grocery business Occoring was not a concern when stores sold items strictly for $ 1 or $ 1.25.
According to McNeely, Dollar Tree is the most "excited" about the food sector, which is a market of $ 500 billion. The company is currently enjoying food of less than $ 2, but McNeely said that items in the $ 2.01 range to $ 5 are "another huge market which is unexploited for us".
He continued: "This is where we are going first. And it is our future."
