Popular chain known for its can't-miss deals announces HUGE price increase
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The most recent price hike at Dollar Tree has caused 'devastation across the nation.'
The popular chain's plan to start products at $1.50 instead of $1.25 is becoming an unfortunate reality for shoppers.
More and more locations have begun offering products starting at $1.50 and $1.75.
Several customers were surprised about the price, and a TikTok user claimed a $1.50 product cost $1.25 'less than 24 hours ago.'
The store was famous for its $1 price point before changing the starting cost to $1.25 at most locations in 2021.
However, the company confirmed it would start its products at $1.50 in thousands of stores last year.
A social media user also noticed their local Dollar Tree was offering items starting at $2 and $5.
The main idea of the price growth is to help the chain expand its assortments and introduce new products.
'Lifting the one-dollar constraint represents a monumental step for our organization and we are enthusiastic about the opportunity to meaningfully improve our shoppers' experience and unlock value for our stakeholders,' said then-CEO Michael Witynski.
Witynski continued by saying Dollar Tree promised to help customers get great value on products regardless of the price point.
Chaos erupted after CEO Rick Dreiling confirmed around 3,000 stores would offer products ranging from $1.50 to $7 in 2024.
'Our shoppers will find $5 bags of dog food next to our traditional $1.25 pet treats and toys, and our $3 bags of candy will be found in the candy aisle,' he said.
Now that the price change is becoming more noticeable, angry customers believe it will put Dollar Tree 'out of business.'
'It's getting to the point where we might as well stop shopping there if I'm paying regular prices,' a shopper wrote.
'They need to change the name to A Dollar and some… Or Dollar Plus Tree lol,' a video commenter joked.
Dollar Tree originally announced the $3 and $5 price point plan in 2021.
The idea was part of its Dollar Tree Plus concept.
The chain planned to have the special section offer products valued between $1 and $5.
'We are a "test-and-learn" organization which is what we are doing with this new initiative,' said Witynski.
The chain rolled out the concept in 500 stores that year, and it's now featured in thousands of US locations.
The backlash has not slowed down over the $7 decision, which Dollar Tree confirmed was being implemented to boost profits.
Despite this issues from customers who've called the chain 'Seven Dollar Tree,' Dreiling claimed the initiative is working.
'We are already seeing a meaningful sales lift at the 1,600 Dollar Tree stores that have been converted to our newest multi-price format,' he said last year.
Dollar Tree finished out 2024 strong after opening approximately 525 new locations.
It also shuttered hundreds of Family Dollar locations before completing a $1 billion sale to private equity firms.
Following the purchase, Dollar Tree expects to make between $18.5 and $19.1 billion in net sales this year.
The chain is currently in the process of opening around 300 new locations and completing store upgrades.
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