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Dollar Tree says it's winning over higher-income shoppers and may offset tariffs with price hikes

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Dollar Tree said it could use negotiations, manufacturing changes and price increases to mitigate the effects of Trump's tariffs.
Dollar Tree has reported an increase in higher-income shoppers, particularly those earning over $125,000 annually, who are drawn to the store's value offerings amidst economic pressures like inflation. CEO Rick Dreiling highlighted this trend during a recent earnings call, noting that these shoppers are not only visiting more frequently but also spending more per visit. This shift in customer demographics comes as Dollar Tree plans to adjust its pricing strategy to offset potential tariff increases. The company is considering price hikes, with items at Dollar Tree Plus potentially increasing from $3 to $5, and at Family Dollar from $1 to $1.25. These changes aim to maintain profitability while continuing to attract a broad customer base, including those from higher income brackets looking for value.

Read the Full CNBC Article at:
[ https://www.msn.com/en-us/money/markets/dollar-tree-says-it-s-winning-over-higher-income-shoppers-and-may-offset-tariffs-with-price-hikes/ar-AA1BHAZd ]