CHESAPEAKE, Va. — Dollar Tree has stayed true to the “Everything’s $1” promise, however this may be changing.
According to the company, they have been quietly testing the new “Dollar Tree Plus! collection” at certain stores since May. The collection features a selection of products that cost more than $1.
The company now plans to expand that initial testing to more than 100 urban, suburban and rural Dollar Tree store locations.
“With its ‘Everything’s a Dollar’ model, Dollar Tree has remained one of the most unique, differentiated and defensible brand concepts in all of value retail. However, we 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,” CEO Gary Philbin said in the first-quarter earnings release.
Dollar Tree operates on a low-margin, high-volume basis allowing cash-strapped costumers to buy more.
However, the company has reportedly been vulnerable to recently imposed tariffs since 40% of its products are sourced from China. By shifting away from the $1 price point the company could potentially pass some of these tariff-related costs on to the consumer.