Dollar Tree says it’s attracting more of certain types of shoppers
Dollar Tree says more middle and high-income shoppers are coming through its doors.
That sign, reports The Wall Street Journal, may indicate that consumers are turning to the discount retailer due to economic concerns.
Despite recently announcing the sale of Family Dollar for a fraction of what it paid for the chain 10 years ago – WSJ reports the retailer remained upbeat about its economic forecast and the potential impact of upcoming tariffs.
According to a report from the U.S. Sun, Dollar Tree CEO Michael Creedon says there is “still a great deal of uncertainty” regarding how the tariffs will impact the company. However, Creedon said one potential strategy to offset the tariffs is to address Dollar Tree’s multi-price plan.
In 2024, Dollar Tree added 300 items priced between $1.50 and $7 in more than 3,000 stores.
“In terms of the different price points, we look at that value,” explained the Creedon, according to the U.S. Sun. “We look at convenience and we look at discovery and we say where can we offer that and maybe move on some pricing as part of not just tariffs, but an inflationary cost environment that we’ve got to mitigate.”