Dollar Tree, the renowned discount retailer, is set to diversify its pricing strategy by introducing merchandise with price tags reaching up to $7 in select stores.

CEO Rick Dreiling revealed plans to expand the multi-price assortment by over 300 items, ranging from $1.50 to $7, in approximately 3,000 locations later this year.This shift marks a departure from the company’s previous upper limit of $5, as Dollar Tree aims to cater to a broader range of consumer preferences. Despite this expansion, Dreiling reassured customers that the majority of items will still adhere to the entry-level fixed price point, maintaining Dollar Tree’s reputation for affordability.

In addition to offering a wider selection of products at varying price points, Dollar Tree has been strategically integrating multi-price merchandise into its stores. Frozen and refrigerated items priced between $3 to $5 have already been available in over 6,500 locations, with plans for further expansion. Moreover, around 5,000 Dollar Tree stores began offering $3 and $5 “center-store merchandise” last year, with an additional 2,000 expected to follow suit in 2024.

Dreiling highlighted that this pricing diversification has not only broadened Dollar Tree’s product offerings but has also attracted a growing number of higher-income shoppers. With those earning above $125,000 constituting the fastest-growing demographic for the retailer, Dollar Tree’s strategic initiatives seem poised to bolster its competitive edge in the retail landscape.