Dollar Tree raising maximum cost per item to $7

Costco cracks down on access to outdoor food courts

Costco will get stricter about who can use its food courts.

Dollar Tree, a nationwide discount retailer, revealed it will raise its maximum price point for select items from $5 to $7.

This announcement follows a decision made last year to introduce $3 and $5 price points at more than 1,800 stores.

Dollar Tree CEO Rick Dreiling discussed the decision during an earnings call, highlighting the expanded product assortment this will bring.

“This expanded assortment will offer Dollar Tree shoppers a wider range of choices across a variety of categories,” Dreiling said. “Over time, you will also see us fully integrate multi-price merchandise more into our stores so 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 assured that the majority of the store’s items will maintain the “entry-level fixed price point” at $1.25.

Dollar Tree recently said the company intended to close approximately 1,000 stores under its subsidiary, Family Dollar, following a penalty of over $40 million due to a rat infestation in one of its warehouses. The fines resulted in the temporary shuttering of hundreds of stores. In the past, Family Dollar has been under scrutiny from the Occupational Safety and Health Administration (OSHA) for safety issues, including blocked exits and improper access to fire extinguishers.

Amid these closures, the company has reported significant quarterly losses. Dollar Tree announced that part of its portfolio optimization strategy includes closing 600 Family Dollar stores within the first half of this year. Additionally, an estimated 370 stores are slated to close once their lease agreements expire, according to their fourth-quarter earnings report.