Dollar Tree Expands Beyond $1 as Tariffs Bite, Profits Soar

As of November 12, 2025, the popular discount retailer Dollar Tree has been steadily increasing prices beyond its traditional $1 mark. In the second quarter of 2025, the company reported a 12.3% year-over-year sales increase, with CEO Michael Creedon asserting that they had added 2.4 million new customers by the end of that period.

The price hikes, which have seen Dollar Tree's base price rise from $1 to $1.25 in 2021 and then to $1.50 in 2025, are largely attributed to the impact of tariffs on essential household items. However, Creedon has told investors that these strategic increases have not hurt sales volume. In fact, he claims that customers are still finding value, with 85% of Dollar Tree's 9,000 stores across the U.S. and Canada offering items priced at $2 or less.

While some customers have expressed frustration over the red sticker price hikes on social media, Dollar Tree's financial performance suggests that the majority of shoppers are still satisfied with the chain's offerings. The company has employed various tactics, such as negotiating with suppliers and redesigning products, to mitigate the cost pressures and keep prices from rising further.