Dollar Tree North Riverside (2024)

FAQs

Why is Dollar Tree stuff so cheap? ›

Purchase Cost

Dollar stores buy a lot of inventory at a time so they can sell things cheaply. Much of the inventory dollar stores purchase cost less than a $1 because they're damaged. But it's buyer beware with items like toys, which can break easily at times.

In the company's most recent earnings call, executive chairman and CEO Rick Dreiling said the increase was part of Dollar Tree's “multi-price point strategy” to offer shoppers a more “relevant assortment,” Business Insider reported.

When did Dollar Tree stop being just $1? Avid Dollar Tree shoppers can remember the good ole days when everything inside the store sold for just a single dollar. Sadly, that hasn't been the case since 2019 when the company introduced items priced at $1.25. In 2021, $1.25 was made the base price for the store.

In 1993, the name Only $1.00 was changed to Dollar Tree Stores to address what could be a multi-price-point strategy in the future, and part equity interest was sold to SKM partners, a private equity firm.

No, Dollar Tree is a publicly traded company owned by its independent shareholders. WalMart and Dollar Tree are both Fortune 500 companies and are competitors.

Pricing. There's no doubt that both of these stores offer affordable prices, but if you're looking for more low-cost options, then Dollar Tree is the way to go. While Dollar General sells products ranging from $3 to $10, Dollar Tree sells everything for just $1.25.

How much more will Dollar Tree prices be? The price cap on items at Dollar Tree stores will now be $7. In 2021, the company raised the base price of items from $1 to $1.25. The cap was also raised in June 2021 to $5 an item.

According to Dreiling, the price changes are expected to take place in 2024, though it wasn't clear when. Officials during the call also hinted at even higher price caps on the horizon, noting that a target price cap of $10 was previously on the table.

Although many items available at your local Dollar Tree, like personal care, food and beverage items, will see a new cap price of $7, up from a max price ceiling of $5 set in June 2023, not all items will be affected by this increase. The vast majority of items will remain priced at $1.25.

For fiscal 2023, the company lost $998 million, versus a profit of $1.6 billion in 2022. The key reason for its loss is a $594.4 million charge for portfolio review, a $1.07 billion goodwill impairment charge, and a $950 million trade name impairment charge.

Who owns Dollar Tree? ›

Dollar Tree is owned by Dollar Tree, Inc. Rick Dreiling has served as the CEO of the company since January 2023 and has held the role of Executive Chairman on the Board of Directors since March 2022.

The retail giant then rolled back its prices to $1 in 2023, a move that coincided with cooling inflation. But now, Dollar Tree has announced that it will be adding a host of new products to its inventory lineup this year. And many of them will cost well more than $1.

A New Chapter. We are writing a bold new chapter for our business — and for towns all across America. We've brought Family Dollar and Dollar Tree together under one roof, starting in small, rural towns across the country that had limited retail options.

Early in the 1990s, K&K Toys was sold to KB Toys, a Melville Corp., and all assets were used to expand dollar stores. We underwent a name change to Dollar Tree Stores in 1994. Then in 1995, we went public on the NASDAQ exchange at $15 a share.

Dollar Tree acquired Family Dollar in 2015 for $8.5 billion and has struggled to boost the brand to meet its flagship stores' appeal, said Neil Saunders, managing director of the analytics company GlobalData's retail division.

“Of the164 dollar store products that we tested in 2015, 81% contained one or more chemicals of concern, including children's backpacks, bath toys and kids' accessories.” “We should not have to wait this long for dollar stores to adopt safer chemicals policies.

Despite the inclusion of items priced above one dollar, Dollar Tree has retained its brand name for continuity and recognition among consumers. The name "Dollar Tree" still conveys the idea of value and affordability, even if not every item in the store is priced at exactly one dollar.

Not unlike big box bulk stores like Costco, dollar stores source their product from other stores or brands looking to sell off merchandise in a hurry, either because they want to make room for new product, or because the items weren't as popular as the purchaser thought they would be.

Don't Buy Vitamins and Supplements

Vitamins and supplements aren't regulated like other medications, which means you can't count on their quality or value at the dollar store, according to Consumer Reports. If you do buy them, look for labels such as USP or NSF International, which guarantee some oversight.