A Dollar Tree store in Dayville, CT.

By Chris Spiker From Daily Voice

Dollar Tree is gearing up to raise prices on more everyday items at a time when many families are already watching every dollar.

The Chesapeake, Virginia-based retailer is signaling that higher price points may be coming as sales rise. Dollar Tree released its third-quarter earnings results on Wednesday, Dec. 3, and reported a 4.2% increase in same-store sales.

CEO Mike Creedon pointed to a growing mix of higher-priced products that's boosting the company.

"Our multi-price strategy drove strong momentum across our business in the third quarter and helped deliver an all-time record Halloween season," Creedon said in a news release. "Today's Dollar Tree is a preferred destination for a wide range of shoppers – whether they rely on us for everyday essentials, appreciate a fast and easy trip, or enjoy the excitement of discovering something unexpected."

While Creedon says about 85% of items cost $2 or less, the floor is rising for many items at the store brand originally named "Only $1.00." In 2021, Dollar Tree increased its standard price point from $1 to $1.25, the first broad hike since the chain was founded in 1986, according to TheStreet.

Dollar Tree has also added $5 and $7 items in recent years, along with essential goods drifting up to $1.50. At a recent investor day, the company said its average item costs $1.40, compared with more than $3 in similar categories at other retailers, MarketWatch reported.

On an earnings call, Creedon said Dollar Tree needs to adapt to shoppers' changing needs.

"Multi-price is about evolving our assortment over time to include new, more relevant, and attractively valued items that we could not offer at a fixed price point of $1 or $1.25," he said. "Multi-price is one of the most important strategic shifts in Dollar Tree's modern history, and it's working."

More wealthy shoppers also seem to be picking Dollar Tree.

According to MarketWatch, 3 million more households shopped at the retailer in Q3 2025, compared to the same quarter in 2024. About 60% of new shoppers made more than $100,000 annually, while another 30% came from middle-income households.

The trend comes as Americans tighten their budgets amid economic turmoil throughout 2025. Data from The Conference Board showed that consumer confidence plunged in November to its lowest level since President Donald Trump announced his "liberation day tariffs" in April.

Trump's duties have especially put pressure on Dollar Tree and its competitors like Dollar General. Discount retailers rely on many imported goods to keep prices lower, including products from China, which Trump has threatened with sky-high tariffs before reducing the rates several times.

Economic instability and Dollar Tree's more expensive products could push some families toward cheaper rivals.

"The beauty of walking into Dollar Tree used to be knowing that no matter what item you grabbed off the shelf, it would only cost $1," TheStreet's Maurie Backman wrote. "That mindset held true, even when Dollar Tree raised its standard price point to $1.25. But if Dollar Tree keeps stuffing its shelves with higher-priced items, customers will eventually become confused and annoyed. And that means they'll likely take their money elsewhere."

Creedon told investors that Dollar Tree is still committed to its three pillars: value, convenience, and discovery. 

"Those are not slogans," he said. "They're how we win. They describe a brand that offers customers compelling values across a variety of price points that help them do more with less, in stores that are easy to shop and full of surprises worth discovering. While the consumer landscape remains uneven, the underlying story remains consistent: all consumers are seeking value."

Dollar Tree is also looking to revive its business model after selling off Family Dollar to two investment firms in July.