Dollar Tree CEO tackles price increases, vows to maintain “value” offerings in 2025
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If you’ve walked into Dollar Tree expecting everything to cost a buck, you’re not alone—and you’re definitely not imagining things when you notice those price tags creeping upward.
Once known for its everything-is-$1 promise, the iconic discount retailer has been slowly but steadily evolving its pricing strategy, rolling out new price points that go far beyond the dollar mark.
So, what’s behind the shift, and should bargain hunters be concerned? Let’s unpack the surprising changes and what Dollar Tree’s top executives are saying about the store’s future.
Some items have recently jumped to $1.50 or even $1.75, sparking frustration among shoppers who’ve long relied on the retailer for ultra-low prices.
But the shift isn’t random—it’s part of a larger plan.
Dollar Tree has rolled out what it calls a “multi-price strategy,” introducing three store models with varying price points: Dollar Tree 1.0, 2.0, and 3.0.
He explained that the increases are necessary to offset rising costs due to tariffs, inflation, and higher freight and labor expenses.
He emphasized that while prices are going up, Dollar Tree still offers significant savings compared to other retailers.
Also read: Supermarket secrets: Never pay full price again with this genius price-tag tip!
Dollar Tree 2.0 stores introduce a small selection of higher-priced items, typically featured in a designated aisle called “The Valley.”
Dollar Tree 3.0 locations, meanwhile, are fully optimized for multi-price points, offering products ranging from $1.25 all the way up to $7 throughout the store.
As of early 2025, there are approximately 2,900 3.0-format stores, with plans to expand that number to 5,200 by year’s end.
Also read: Shoppers outraged: The price of this beloved Costco Bakery item has skyrocketed!
Some customers are understandably upset by the change, but company leaders say the new model allows for better-quality products, expanded inventory, and ultimately more value.
Creedon noted that customer response to the broader pricing strategy has been positive in test locations, particularly when it comes to food and household goods.
The program proved successful and now appears in over 1,500 stores.
The 3.0 stores take this concept even further, integrating higher-priced items across all sections of the store—not just a single aisle.
This, the company says, offers shoppers more choice and variety without abandoning the low-price roots Dollar Tree is known for.
The company recently announced the sale of its struggling Family Dollar brand in a $1 billion deal, along with the closure of multiple locations.
Executives say this move will allow the company to refocus on its core business and invest in growing its more profitable 3.0-format Dollar Tree stores.
What do you think about the changes at Dollar Tree? Have you noticed price hikes at your local store? Are the new offerings worth it, or do you miss the old dollar-only days? Share your thoughts below—we’d love to hear from our savvy GrayVine community as we all adapt to this new shopping reality.
Read next: Why everyone’s racing to Dollar Tree for this $1.25 beauty must-have!
Once known for its everything-is-$1 promise, the iconic discount retailer has been slowly but steadily evolving its pricing strategy, rolling out new price points that go far beyond the dollar mark.
So, what’s behind the shift, and should bargain hunters be concerned? Let’s unpack the surprising changes and what Dollar Tree’s top executives are saying about the store’s future.
From $1 to $1.75—And Beyond
In 2021, Dollar Tree broke from its decades-long pricing model, raising its base price to $1.25 across most stores. Now, the evolution continues.Some items have recently jumped to $1.50 or even $1.75, sparking frustration among shoppers who’ve long relied on the retailer for ultra-low prices.
But the shift isn’t random—it’s part of a larger plan.
Dollar Tree has rolled out what it calls a “multi-price strategy,” introducing three store models with varying price points: Dollar Tree 1.0, 2.0, and 3.0.
Dollar Tree's CEO, Michael Creedon, has addressed the price increases seen in stores. Image source: Sway’s Deals / YouTube
CEO Speaks Out: “We’re Still Focused on Value”
Dollar Tree CEO Michael Creedon addressed the changes during the company’s fourth-quarter earnings call in March.He explained that the increases are necessary to offset rising costs due to tariffs, inflation, and higher freight and labor expenses.
He emphasized that while prices are going up, Dollar Tree still offers significant savings compared to other retailers.
Also read: Supermarket secrets: Never pay full price again with this genius price-tag tip!
Breaking Down the New Pricing Models
Dollar Tree 1.0 remains the most familiar, with over 95% of items priced at $1.25 or less.Dollar Tree 2.0 stores introduce a small selection of higher-priced items, typically featured in a designated aisle called “The Valley.”
Dollar Tree 3.0 locations, meanwhile, are fully optimized for multi-price points, offering products ranging from $1.25 all the way up to $7 throughout the store.
As of early 2025, there are approximately 2,900 3.0-format stores, with plans to expand that number to 5,200 by year’s end.
Also read: Shoppers outraged: The price of this beloved Costco Bakery item has skyrocketed!
Is This Still the “Dollar” Tree?
The name may be staying the same—but the pricing structure definitely isn’t.Some customers are understandably upset by the change, but company leaders say the new model allows for better-quality products, expanded inventory, and ultimately more value.
Creedon noted that customer response to the broader pricing strategy has been positive in test locations, particularly when it comes to food and household goods.
What About Dollar Tree Plus?
Launched in 2019, Dollar Tree Plus aisles featured items priced up to $5.The program proved successful and now appears in over 1,500 stores.
The 3.0 stores take this concept even further, integrating higher-priced items across all sections of the store—not just a single aisle.
This, the company says, offers shoppers more choice and variety without abandoning the low-price roots Dollar Tree is known for.
Big Picture: Family Dollar Sale and Store Closures
In addition to the price increases, Dollar Tree is undergoing a major transformation behind the scenes.The company recently announced the sale of its struggling Family Dollar brand in a $1 billion deal, along with the closure of multiple locations.
Executives say this move will allow the company to refocus on its core business and invest in growing its more profitable 3.0-format Dollar Tree stores.
Read next: Why everyone’s racing to Dollar Tree for this $1.25 beauty must-have!
