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  • June 2022 (Revised August 2022)
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Dollar Tree: Breaking the Buck

By: Jill Avery and Marco Bertini
  • Format:Print
  • | Language:English
  • | Pages:22
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Abstract

For thirty-five years, Dollar Tree, a discount retail chain selling general merchandise, had held its fixed price point steady, pricing all of its household items, food, stationery, books, seasonal items, gifts, toys, and clothing that made up its diverse and ever-changing assortment at $1.00. While all other dollar store chains had raised prices over the years to keep up with inflation, Dollar Tree had never budged on its price. However, in late 2021, the company announced that Dollar Tree was “breaking the buck” and raising prices on all goods to $1.25. Would the demise of the $1.00 price point bring about the downfall of Dollar Tree or could the retail chain weather its price change without alienating its price sensitive shoppers through smart marketing, pricing, and branding strategies?

Keywords

Retailing; Pricing; Pricing Strategy; Discount Retailing; Discount Store; Marketing; Brands and Branding; Marketing Strategy; Price; Inflation and Deflation; Consumer Behavior; Retail Industry; United States

Citation

Avery, Jill, and Marco Bertini. "Dollar Tree: Breaking the Buck." Harvard Business School Case 522-091, June 2022. (Revised August 2022.)
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About The Author

Jill J. Avery

Marketing
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Related Work

    • June 2022 (Revised August 2022)
    • Faculty Research

    Dollar Tree: Breaking the Buck

    By: Jill Avery and Marco Bertini
    • March–April 2023
    • Harvard Business Review

    Case Study: Should a Dollar Store Raise Prices to Keep Up with Inflation?

    By: Jill Avery and Marco Bertini
Related Work
  • Dollar Tree: Breaking the Buck By: Jill Avery and Marco Bertini
  • Case Study: Should a Dollar Store Raise Prices to Keep Up with Inflation? By: Jill Avery and Marco Bertini
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