After debuting its Combo and Dollar Tree Plus store formats, Dollar Tree will soon add items that cost more than $1 to its legacy stores. Dollar Tree Plus offers items from $3 to $5 and is promoted as a mix between Dollar Tree and Five Below.
Dollar Tree is on track to have 500 Dollar Tree Plus stores by the end of fiscal year 2021, with future plans to add 1,500 stores are planned for fiscal 2022, and at least 5,000 Dollar Tree Plus stores are expected by the end of fiscal 2024.
Currently, Dollar Tree has 105 Combo stores, which offer a multi-price assortment, and the discount retailer expects to add 400 Combo Stores in fiscal 2022, with the potential of up to 3,000 over the next several years.
The new store concepts come as supply chain challenges have accelerated since the start of the pandemic, increasing costs across the retail industry.
“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,” said Michael Witynski, president and CEO of Dollar Tree. “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.”
According to Witynski, the company is able to test and learn through its new store concepts, but still promises value to its customers even with higher price points.