Discount retailer Dollar Tree reported Wednesday that it is gaining market share with higher-income consumers and may raise prices on some goods to offset President Trump’s tariffs, CNBC reports.
While the dollar store chain has historically relied on lower-income shoppers and gets about 50% of its business from middle-income consumers, Dollar Tree CEO Michael Creedon says inflation has increased demand from higher-income customers.
Dollar Tree plans to negotiate with suppliers and move manufacturing to remedy potential costs associated with Trump’s tariffs on certain goods from China, Mexico, Canada and other trading partners. Despite additional cost-saving efforts, the tariffs may increase the prices of some goods at the discount retailer.
The retailer says it will sell its struggling Family Dollar chain for nearly $1 billion to a consortium of private equity investors. For fiscal 2025, Dollar Tree anticipates net sales of $18.5 billion to $19.1 billion from continuing operations, with same-store sales growth of 3% to 5%. It plans to post adjusted earnings of $5 to $5.50 per share for the year.
Read the full story from CNBC.
