Dollar Tree is raising the price cap to $7 in 3,000 stores nationwide, according to a transcript of the company’s fourth-quarter earnings call.
In addition to an increase in the price cap, the base price for items in-store will be raised from $1.25 to $1.50.
The previous price cap was set at $5 in June. Impacted items could include food, pet, and personal care items.
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"Over time, you will also see us fully integrate multi-price merchandise more into our stores so our shoppers will find $5 bags of dog food next to our traditional $1.25 pet treats and toys, and our $3 bags of candy will be found in the candy aisle," CEO Rick Dreiling said in the March 13 call.
The move comes after the company announced plans to close about 600 Family Dollar stores in the first half of this year, along with 370 Family Dollar and 30 Dollar Tree stores over the next several years.
Dollar Tree bought Family Dollar in 2015 for more than $8 billion.
