Dollar Tree: Store Closures, Price Hikes & Slowing Sales
Dollar Tree is closing over 75 locations across the United States and has quietly increased prices on a growing number of items, marking a significant shift for the discount retailer. The closures, announced in January 2026, come as the company navigates a changing economic landscape and evolving consumer behavior, according to reports from The US Sun.
The price increases, which began in 2025, have seen the baseline price of many items rise from $1.25 to $1.50 and, in some cases, to $1.75. Dollar Tree initially implemented a $1.25 price point following the COVID-19 pandemic, abandoning its long-held strategy of selling most items for $1. According to a December 2025 report in the Pensacola News Journal, 85% of Dollar Tree’s items remain priced at $2 or less, despite the increases.
Dollar Tree CEO Michael Creedon defended the price adjustments during a November earnings call, stating that expanding the assortment to include items at a variety of price points is becoming the standard business model. “We still have 85% of our stores at $2 or less. Reckon about that. You walk in and you’re finding value around every corner. We think our customer is really pleased with that,” Creedon said.
The price hikes are a response to factors including tariffs and broader inflationary pressures. The company is also attempting to attract new customers by expanding its product offerings. Shoppers have noticed the changes and expressed their reactions on social media, as reported by TheKrazyCouponLady.com.
The closures and price increases are occurring as Dollar Tree experiences slowing sales growth despite an influx of budget-conscious shoppers. A report from TheStreet noted that the company has had to raise prices to maintain up with inflation.
According to a January 7, 2026, YouTube video, the shift away from Dollar Tree’s traditional dollar pricing is changing the shopping experience for many customers. The company is growing its multi-price assortment, with a number of products now costing more than the previous base price of $1.25.