Continue Reading Below
Despite the $1 promise, the discount retailer has already been testing higher-priced products under the “Dollar Tree Plus” collection, Business Insider reported last month.
That collection will expand to 100 more locations, according to the outlet.
The discount chain is particularly at risk of rising costs after President Trump announced in May that the U.S. tariffs imposed on Chinese goods would increase. The “vast majority” of Dollar Tree’s products are from China, CEO Gary Philbin said at the time.
The increased prices at Dollar Tree could impact low-income shoppers, particularly in minority communities, CultureBanx reported Tuesday.
However, Philbin also told Fox Business in May that the company had "overcome" the tariff impact so far, adding Dollar Tree imports about 40 percent and about half of that at Family Dollar.
"For Dollar Tree, everything's a dollar. It's never about raising our retail. It's about changing product if we have to," he explained. "We've always changed items."
|DLTR||DOLLAR TREE INC.||112.25||-0.07||-0.06%|
Dollar Tree also announced in May it would be renovating 1,000 stores in 2019. Alcoholic beverages will also soon be available at those locations, as the chain adds more freezers and cooler doors to its stores. Currently, 45 Family Dollar stores are selling adult beverage products.
The company began testing renovations on Family Dollar stores in 2018 and says they have yielded a 10 percent increase in sales, on average, compared to locations that have remained the same. As of May 4, approximately 550 stores have undergone changes.
"[These] stores perform well in a variety of locations, and especially in locations where Family Dollar has been most challenged in the past," the company noted.
Dollar Tree expects to close up to 390 "under-performing" stores this year and convert 200 Family Dollar stores to Dollar Tree. However, Philbin told Fox Business in May that he also expects 500 stores (between Family Dollar and Dollar Tree) to open in 2019.
When the company released its first-quarter earnings of $267.9 million — a $160.5 million increase from the prior year's quarter -- it said it had a profit of $1.12 on a per-share basis. Earnings, adjusted for non-recurring costs, came to $1.14 per share.
Overall, the results fell short of Wall Street expectations.
Dollar Tree shares have increased 5.5 percent since the beginning of the year, while the Standard & Poor's 500 has climbed 11 percent. The stock had risen slightly in the previous 12 months.
"It's a great day at Dollar Tree," Philbin said to Fox Business in regard to the first quarter reports.
Fox Business’ Jennifer Earl and The Associated Press contributed to this report.