In what potentially could be a shift that would substantially broaden the product assortment, Dollar Tree has announced plans to begin adding new price points above $1 across all Dollar Tree Plus stores and to test additional price points above $1 in selected legacy Dollar Tree stores.
Dollar Tree is on track to have 500 Dollar Tree Plus stores up and running by fiscal year-end, the company noted. The offering at the Plus operations includes an assortment of value-priced $1, $3 and $5 products. The company intends to add 1,500 Plus stores for fiscal 2022 and expects to operate 5,000 Plus locations by the end of fiscal 2024.
Dollar Tree asserted that it also has had significant success with its newest store format, the Combo Store, which leverages the strengths of both its banners by bringing a multi-price assortment to Dollar Tree shoppers. The company currently operates 105 Combo Stores and expects to add 400 Combo Stores in fiscal 2022, with the potential of up to 3,000 over the next several years.
Dollar Tree recently touted its new formats in a conference call where executives also highlighted the strength of the home sales segment.
In announcing the move, Michael Witynski, Dollar Tree president and CEO, stated, “For decades, our customers have enjoyed the ‘thrill-of-the-hunt’ for value at one dollar, and we remain committed to that core proposition, but many are telling us that they also want a broader product assortment when they come to shop. We believe testing additional price points above $1 for Dollar Tree products will enable us over time to expand our assortments, introduce new products and meet more of our customers’ everyday needs.”
Witynski emphasized the Dollar Tree is in a “test-and-learn” mode, including its decision to add more price points to Dollar Tree operations.
“We listen to our customers and believe it will make shopping with us an even better experience,” he said. “Our merchants have proven that they are among the best in the industry in working with suppliers to create extreme value, and we will continue to deliver the ‘thrill-of-the-hunt’ to our customers. Our brand promise is that customers get great value for what they spend at Dollar Tree. We will continue to be fiercely protective of that promise, regardless of the price point, whether it is $1.00, $1.25, $1.50.”