After selling its products for decades for a dollar or less, Dollar Tree is now adding items for higher prices in thousands of stores.
Dollar Tree revealed that it would begin selling items at $1.25 and $1.50 at some locations. Items ranging from $3 and $5 will be added to more stores, moving forward with its strategy of offering more expensive products. According to CEO Michael Witynski, the increase was due to the rising costs the chain is facing. Moreover, the move will allow it to expand its assortment and introduce new products.
The items will be found in the dedicated “Dollar Tree Plus” sections, available in more than 500 stores by the end of 2024.
Moreover, Dollar Tree said it would increase its share buyback program to $2.5 billion from $1.45 billion previously announced.
After the news hit the wires, Dollar Tree share price rose 16%, marking its most significant gain since October 25, 2000. With this movement, it outpaced USA30 and USA500 increase of 0.3% and 0.2%, respectively.
Sources: barrons.com, cnn.com