Dollar Tree executives have made the decision to raise the price cap of the store from $1.50 to $7, boasting to investors that the change will boost profits. In response, customers are expressing their outrage. CEO Rick Drelling (inset) says that the higher price cap allows it to sell a much wider range of items — including food, snacks, beverages, pet care and personal care — that attract wealthier customers. Nevertheless, Dollar Tree shares tumbled more than 20% earlier this week, after hitting a 52-week low. The discount store has been in the process of restructuring its business and in June said it was exploring options, including a potential sale of its Family Dollar stores. Dollar Tree acquired Family Dollar nearly a decade ago for more than $8 billion after a bidding war with rival Dollar General. As of August 3, Dollar Tree has shuttered about 655 stores and plans to close 45 more stores through the end of the year. The company’s annual revenue is in the range of $30.6 billion, down from $32 billion. Some say Dollar Tree is digging its own grave by turning its back on low-income customers who depend on the store’s low prices.
