Dollar Tree made a pricing move shoppers have been asking for

Shopping at Dollar Tree used to be fairly predictable. You’d walk into the store, browse the inventory, and know in your head that no matter what products you grabbed, you’d be looking at paying $1 per item.

But the days of only paying $1 at Dollar Tree are long gone. And there’s a reason for that.

Dollar Tree has been trying its hardest to target a wide range of consumers.

These days, 10.3% of people earning $100,000 or more shop at Dollar Tree, according to CBS News, citing findings from GlobalData Retail. That’s an increase from 5.6% of consumers earning $100,000 or more in 2021.

But there’s an easy explanation behind that trend.

Higher-income shoppers have been forced to stretch their paychecks due to persistent inflation. And Dollar Tree is trying its best to cater to them.

During Dollar Tree’s most recent earnings call, CEO Michael Creedon said, “Our exceptional value proposition, including our growing multi-price assortment, is resonating with our shoppers by helping them meet their needs and desires in the budget-constrained environment that many consumers find themselves in today.”

A wider range of price points might make sense for Dollar Tree at a time when the company is clearly trying to appeal to higher-income shoppers. But in expanding its assortment, the company also risks frustrating — and therefore alienating — a significant chunk of its customer base.

A big part of Dollar Tree’s value proposition has long been pricing consistency. Ditching that strategy to chase higher-income customers is a move that could cost Dollar Tree a lot of revenue in the long run.

Related: Target sees shift in consumer behavior

• 2021: Dollar Tree raises its base price to $1.25.
  Source: Fortune

• 2023: Dollar Tree introduces many $5 items into its lineup.
  Source: Retail Dive

• 2024: Dollar Tree expands inventory to include $7 items.
  Source: Fortune

• 2025: Dollar Tree quietly raises prices on key items from $1.25 to $1.50.
  Source: Parade

Of course, Dollar Tree’s multi-price strategy is supposed to add value for consumers, not dilute it. And higher-income shoppers might see things that way.

But for budget-conscious shoppers who are feeling squeezed financially, the added variety may not play well, especially if the store’s most appealing products are beyond what they can afford.

In 2024, Dollar Tree acquired designation rights for 170 leases of 99 Cents Only Stores across a number of states, after the bankrupt chain liquidated its assets.

“The portfolio complements our existing footprint and will provide us access to high quality real estate assets in premium retail centers, enabling us to rapidly grow the Dollar Tree brand across the western United States, reaching even more customers and communities,” Creedon said at the time.

Related: Costco quietly raised price of popular member item

But that acquisition wasn’t just about expanding Dollar Tree’s footprint. A Placer.ai report shows that Dollar Tree intentionally picked 99 Cents Only locations that had above-average foot traffic.

Unfortunately for Dollar Tree, the move backfired somewhat.

Placer.ai reports that total visits to the converted stores dropped 38.8% in 2025 compared to their 2023 baselines, suggesting too much overlap with nearby Dollar Tree locations. In fact, the report found that the average distance between converted 99 Cents Only stores and the nearest Dollar Tree was a mere 1.4 miles.

That drop isn’t necessarily a failure, though. Placer.ai says there’s now an opportunity for a “healthy correction” for the company.

“Dollar Tree’s acquisition and conversion of former 99 Cents Only locations gives the brand a distinct opportunity to expand into the grocery and essentials categories and better compete with its peers in the dollar and discount space,” Elizabeth Lafontaine, Director of Research at Placer.ai, told TheStreet.

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“Dollar Tree has often been associated with more affluent consumer segments and an assortment that skews more discretionary, so this new endeavor can aid them in welcoming new shoppers to the brand and potentially spurring more repeat visitation.”

It’s also encouraging to see that Dollar Tree isn’t abandoning its lower price point at a time when it’s aggressively trying to grow its customer base.

Consumers may not be as thrilled with the company’s multi-price strategy as Dollar Tree is itself, but a return to a lower price point is a step in the right direction.

Related: Huge Costco grocery rival launches expansion plans

This story was originally published by TheStreet on Jan 25, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.