Dollar Tree will raise the price cap in its stores to $7 according to its fourth-quarter earnings call earlier this month.

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“This year, across 3,000 stores, we expect to expand our multi-price assortment by over 300 items at price points ranging from $1.50 to $7,” Dollar Tree CEO Rick Dreiling said in the call on March 13, USA Today reported.

In 2021, the company raised the base price of items from $1 to $1.25. Last June, the company announced a $5 cap, Yahoo Finance reported.

Company officials say the increase in prices reflects a wealthier customer base.

“The fastest-growing demographic is north of $125,000 a year in income,” said. “It’s not like the Northeast is strong and the West is weak. That boat is lifting pretty even all the way up.”

The company recently announced that it would close around 1,000 Family Dollar brand locations over the next few years with 600 expected to close this year.

Some of the locations closing include stores in:

• Middletown, New Jersey
• Tallahassee, Florida
• Peoria, Illinois
• Lynchburg, Virginia
• East Liverpool, Ohio
• Slocomb, Alabama
• Wilmington, North Carolina
• Humansville, Missouri
• Willow Springs, Missouri
• Wichita, Kansas
• Clearwater, South Carolina
• Elkins, West Virginia

Dollar Tree operates 16,774 stores across 48 states as of Feb. 3.

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