Dollar Tree to Raise Prices Again in 2024: The Impact on Memphis
In a move that deviates from its historically budget-friendly stance, Dollar Tree has confirmed plans to raise prices once again in 2024. This is the largest increase the company has made so far, marking a minimum price hike from $1.25 to $1.50. An official timeline regarding the introduction of pricier items in stores remains under wraps, but the company promises an expedited rollout of the new pricing tiers.
Details of the Dollar Tree Price Increase
Dollar Tree’s planned 2024 price shift will see the minimum price in the stores rise to $1.50 from $1.25, marking a significant 20% increase. At the higher end of the spectrum, the maximum price will increase from $5 to $7. “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,” stated Dollar Tree CEO Rick Dreiling during an earnings call on March 13.
The Last Time Dollar Tree Raised Prices
In 2021, the store announced plans to expand its merchandise to incorporate $3 and $5 items, deviating from its traditional $1 pricing model. This formed a part of the “Dollar Tree Plus” initiative, a program projected to boast 2,000 operational stores by the end of 2022. This announcement marked the first significant departure from the store’s long-standing pricing tradition.
Historical Price Changes
For the old-timers who remember every item in the Dollar Tree store’s price tag reading $1, it’s quite a leap to the current status. The shift began in 2019 when the company introduced items priced at $1.25. By 2021, this minimal price became standard across the entire store, marking the end of the “everything for $1” era.
Store Closures
Alongside the news of another pricing increase, Dollar Tree also announced the closure of approximately 600 Family Dollar Stores in the first half of the fiscal year 2024, followed by about 370 more in the ensuing months. These statistics emerged from the company’s 2023 fiscal year fourth-quarter reports. However, it’s worth noting that they have not yet announced specific closures within the Memphis region.
The Impact on Memphis Residents
As of April 17, Memphis boasts a total of 25 Dollar Tree stores, all of which have experienced previous price increases to include the $3 and $5 items. These stores may soon see the introduction of items priced up to $7. With no definitive information about store closures, Memphis residents are left in question about how these changes will impact their shopping experiences – and their wallets.
