Is Dollar Tree Raising Prices?
The short answer: yes, it sounds like Dollar Tree is raising prices. But, there’s more to this than meets the eye. And, the rumor keeps circling!
The real questions is when will it happen? In 2024 DT said it would raise prices, but for most stores that hasn’t happened yet. It seems to be rolling out more and more. And each time someone encounters another phase of this rollout, it fuels the flames.
Here’s what we know.
Timeline of Dollar Tree Prices
Back in late 2021, Dollar Tree raised their base prices from $1 to $1.25. Last March, we reported that Dollar Tree was raising prices from $5 to $7 for top-priced, Dollar Tree Plus items. CEO Rick Dreiling announced that DT would raise prices to $1.50 on average. But, this has not happened yet across the board.
“This year, across 3,000 stores, we expect to expand our multi-price assortment by over 300 items at price points ranging from $1.50 to $7,” Dollar Tree CEO Rick Dreiling said in the call on March 13.” – Dollar Tree CEO
Fast forward to March 2025, we are hearing rumors again of Dollar Tree raising their base price from $1.25 to $1.50.
What’s the official word? Well, there hasn’t been an official update in almost a year and prices have not gone up at all Dollar Tree stores as of yet. The Dollar Tree website says they recently raised prices to $1.25, but we know that happened in 2021-22.
Some stores have already raised to $1.50, but most are still at $1.25. It seems like the only consistent thing with Dollar Tree is that there is no consistent pricing between stores. For example, I bought a few rolls of ribbon for $3 and then found it for $1.25 at a different store. Same product, same size, different price. They were exactly the same!
Why Does the Dollar Store Need to Raise Prices?
There are several reasons that dollar stores feel they need to raise their prices. Here are a few we brainstormed:
- Costs are going up, from products to tariffs to shipping and fuel costs.
- Inflation affects everything, even dollar stores. In January 2025, prices had increased by 3.0% over prices in January 2024.
- Suppliers charge more, so stores have to adjust. With their costs also rising, suppliers are charging more to get the same items.
- Rent and utilities are going up. The rising cost of real estate, taxes, and energy also contribute to stores charging more.
- Wages are rising, so they need to pay employees more. Although one could argue that wages have only increased 1% in the past year and Dollar Tree does not seem to be at the forefront of giving good raises, it can still impact their bottom line.
Dollar Tree Needs to Change Their Name!
Angry shoppers have said many times in our huge Dollar Tree Crafts group, ‘if they raise the price, they need to change the name!’
While we certainly commiserate with this thinking, other stores such as Dollar General and Family Dollar use the almighty dollar in their name but charge more than a dollar. So, Dollar Tree (or Dollar Twenty-Five Tree) probably won’t be changing their name anytime soon.