This Dollar Store Now Sells Items That Cost More Than $1

Photo by MyImages - Micha / Shutterstock.com

Not everything at the dollar store costs $1 anymore, at least at some Dollar Tree stores.

In May, the chain started introducing more expensive items in select locations as a test. Now Dollar Tree is in the process of expanding the test to more than 100 locations, according to a recent announcement from Dollar Tree Inc., the company that operates both the Dollar Tree and Family Dollar chains.

The purpose of this “carefully considered test” is to understand how Dollar Tree shoppers respond to seeing items that cost more than a buck for sale at the dollar store chain, the announcement says.

Dollar Tree Inc. President and CEO Gary Philbin explains:

“[W]e have always been a ‘test-and-learn’ organization that is committed to evaluating all opportunities to deliver great value for our customers while driving long-term value creation. During this test, we look forward to measuring and assessing the initial results and understanding if the introduction of multiple price points across a broader set of stores is in the best interests of our customers, Company and shareholders.”

The more expensive items are called “Dollar Tree Plus!” products, as they are “designed to provide our shoppers with More Choices, More Sizes, and More Savings,” Philbin says.

Frugal shoppers need not worry about price hikes, though. Dollar Tree is not raising the prices of its current selection of products that cost $1. Instead, it’s adding new products to the selection.

Dollar Tree is leveraging the purchasing power of sister chain Family Dollar to add the Dollar Tree Plus! products to Dollar Tree’s selection.

“The merchandise team at Family Dollar has the expertise and purchasing power to purchase high-value multi-price merchandise for these test stores,” Dollar Tree Inc. said in an announcement earlier this year.

While Dollar Tree has — until now — sold only items that cost no more than $1, Family Dollar sells products that cost up to $10, according to Dollar Tree Inc.’s latest annual report.

Family Dollar is also a larger chain. It had 8,236 stores as of February — compared with 7,001 Dollar Tree stores, including Dollar Tree Canada locations.

What’s your take on this news? Sound off by commenting below or over on the Money Talks News Facebook page.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

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