Max Cap at $7
Dollar Tree has been raising its prices for a long time. After changing their base price from $1 to $1.25, the next hike was announced for the maximum cap.
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Last year, the max cap was at $5, but this year, it went up to $7. Some items would also now have a $1.50 price tag, 25 cents up from the new base price.
One-Percenters Shop There
Higher income families shopping at discount retailers like Dollar Tree is said to be the driving force of this new pricing strategy by Dollar Tree.
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Never mind that these one-percenters were once too proud to shop at discount retailers, but as a Wells Fargo rep told The Wall Street Journal, “These days, it’s about making the most of your money and not getting ripped off.”
They’d Rather Go to Walmart
But its primary customer base — people with lower income per year — is finding the price hike ridiculous. “Too much,” one customer in West Palm Beach, Florida, said.
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“If it were really going to go up like $7 … that’d be too much. I’d rather just get everything at Walmart,” said Scott Kolack, a Dollar Tree regular, to a WPTV reporter.
Buzzing About the Price Hike
TikTokers was already abuzz with the price hike since February this year. A TikToker’s video garnered angry responses from other users on the platform.
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The original poster named Brooke asked her followers, “Can someone tell me when Dollar Tree changed their prices from $1.25 to $1.50? That’s crazy. I didn’t even know they changed it.”
Angry TikTokers
Even before the $7 cap was announced, one of Brooke’s followers responded with: “I’m still mad about the $1.25 because now I can only get 4 items instead of 5 for $5.”
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Others were already planning their Walmart exodus. “I had to stop going. Most of their stuff is $.97 at Walmart,” one commented. Another wrote, “I don’t even go there now. Even Walmart is cheaper.” And finally, one concluded, “When 25 items came up to $90 is the day I stopped shopping there.”
Attack of the Trolls
The internet started trolling Dollar Tree soon. One Instagram user suggested, “Just rename it ‘Tree’ cause nothing in there cost a dollar anymore and y’all think money grows from one.”
Source: @vinylswift89/X
Another rename was also suggested by a user on X (formerly Twitter): “$7.” And another X user complied with the suggestion, offering a ‘fixed’ logo of Dollar Tree to match the new price cap.
Burden on Teachers
An outraged Instagram user also wrote, “They’re canceling themselves. Who TF is going to shop there now with those crazy prices.” The user ended the post saying, “To Walmart we go!”
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Teachers, in particular, are feeling burdened. Many teachers buy their classroom suppliers at Dollar Tree; now they have to contend with more expensive items. “This is really bothersome, especially for teachers. I honestly felt the .25 increase. So many of my class treats / surprises come from here- and my salary definitely isn’t getting the increase it deserves.”
Walmart Exodus Possible
At this rate, a Walmart exodus is not actually far from possibly happening. Many shoppers have been testing prices between both stores. And it seems that Dollar Tree is only cheaper for some things, NOT ALL things.
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Even last year, when directly comparing several factors like prices, selection, quality, and return policy, Walmart came out on top for offering the bigger value.
Walmart vs. Dollar Tree
A consumer analyst with DealNews.com, Julie Ramhold, even had this to say about the Dollar Tree base price: “While most of what Dollar Tree offers is $1.25 each, that doesn’t mean it’s always a good deal, especially when you consider unit price.”
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Ramhold also pointed out that not every product is available in-store; you can order items online… but in mass quantities. “This can mean you have to buy 6 outdoor welcome mats at $5 for a total of $30 or a case of 24 mirrors or canvas magnets at $1.25 each for $30 total.” In Walmart, on the other hand, ”you can find welcome mats starting at $4 with a ton of different designs available, mirrors from $7, and sets of refrigerator magnets for around $3.”
Quality Improvement
Some people are not giving in to anger. Instead, they are asking whether the quality of Dollar Tree items have gone up, too.
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A shopper in Fort Collins, Colorado, for example, managed to find branded clothes, character merchandise, and even gaming keyboards for a relatively low price. They were priced at $5, but compared to other places, this was considered cheaper.
Positive Outlook
Dollar Tree CEO Rick Dreiling keeps a positive outlook for the retailer. The price hikes are, he said, a “multi-price expansion strategy.”
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Now that there are wealthier customers shopping at the chain, Dollar Tree would continue to work on “new ways to deliver value.” An increase in price, along with adding new product assortments, at their stores will guarantee that shoppers will always find value at Dollar Tree.