Dollar Tree Upping Prices, But Cost-Wary Shoppers May Not Bite -- Market Talk

Dow Jones
03-22

1247 ET - Dollar Tree, once known for one-dollar items, is expected to raise the price of some goods like bread and foil pans to $1.50 starting next week, BMO analyst Kelly Bania says. Bania expects that price to shift to more products going forward as the retailer mitigates rising costs from tariffs on Chinese imports. This comes about five years after Dollar Tree first started experimenting with $1.25 prices, and it now charges that amount for about 90% of items, Bania says. Bania questions how much the latest price increase will help Dollar Tree's margins as low-income shoppers remain extremely price-sensitive and the $1 price point is still a strong category for rival Dollar General. (katherine.hamilton@wsj.com)

 

(END) Dow Jones Newswires

March 21, 2025 12:47 ET (16:47 GMT)

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