Dollar Tree is raising its prices to $1.25, officially breaking the buck for good (2024)

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Dollar Tree is raising its prices to $1.25, officially breaking the buck for good? ›

Dollar Tree is officially breaking the buck. The discount chain announced Tuesday in its third-quarter earnings results that it will now sell the majority of its $1 items for $1.25 after testing higher prices earlier in the year.

Dollar Tree is yet again not sticking to the dollar theme in its name. The company announced last month that it would be increasing the prices on items again. The official prices announced were a minimum of $1.50.

We've added Dollar Tree Plus sections to over 5,000 of our stores which provide customers with even greater deals at the $3 and $5 price points. We will continue to expand the Plus assortment to even more stores in the coming years.

In 2021, Dollar Tree caused an uproar when it raised its standard price from $1, as the store name implies, to $1.25. The retail giant then rolled back its prices to $1 in 2023, a move that coincided with cooling inflation.

Dollar Tree's CEO did say in March the increase will start in 2024 across all stores. "This year, across 3,000 stores, we expect to expand our multi-price assortment by over 300 items at price points ranging from $1.50 to $7," Dollar Tree CEO Rick Dreiling said in the call on March 13.

The average price target for Dollar Tree is $139.88. This is based on 19 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $170.00 ,the lowest forecast is $115.00.

Nonperishable Goods

Items like cleaning supplies, personal hygiene products — toothpaste, soap — and basic office supplies offer long-term value because they don't expire and will always be needed, he said. Dollar Tree has hinted that products in these categories will be on the increase list.

Compared to the current market price of 104.47 USD, Dollar Tree Inc is Undervalued by 30%.

Dollar Tree is owned by Dollar Tree, Inc. Rick Dreiling has served as the CEO of the company since January 2023 and has held the role of Executive Chairman on the Board of Directors since March 2022.

According to Yahoo Finance, a $5 price cap was announced in June 2023. The base price had also been raised to $1.25 in 2021. According to Dreiling, the move was made in order to add new products to their shelves.

Is Dollar Tree and Family Dollar merging? ›

Dollar Tree putting Family Dollar up for sale after disastrous merger, mass closings. Dollar Tree said Wednesday it will explore a sale or spinoff of Family Dollar, less than a decade after acquiring the chain in what has turned out to be a disastrous merger.

Family Dollar, which is owned by Dollar Tree, was recently fined more than $40 million for a rat infestation at a warehouse that forced hundreds of stores to temporarily close.

For fiscal 2023, the company lost $998 million, versus a profit of $1.6 billion in 2022. The key reason for its loss is a $594.4 million charge for portfolio review, a $1.07 billion goodwill impairment charge, and a $950 million trade name impairment charge.

Avid Dollar Tree shoppers can remember the good ole days when everything inside the store sold for just a single dollar. Sadly, that hasn't been the case since 2019 when the company introduced items priced at $1.25. In 2021, $1.25 was made the base price for the store.

The Company is reiterating its full-year fiscal 2024 consolidated net sales outlook range of $31.0 billion to $32.0 billion.

Dollar General forecast 2024 sales to grow between 6.0% and 6.7%, above analysts' estimate of 4.4% growth to $40.33 billion, according to LSEG data.

Family Dollar stores were in worse condition than Dollar Tree management expected, and early strategies to improve sales, such as selling beer, fell short. Many Family Dollar stores were located too close to each other and cannibalized each other's own sales, too, D'Arezzo said.