Dollar Tree will open 400 new stores in 2026 and close 75 locations as the value retailer continues its move to a multi-price strategy, with more items priced in the $3 to $5 range. The strategy already is paying off: Dollar Tree’s net sales for FY 2025, which ended Jan. 31, 2026, rose 10.4% compared to the previous year, reaching $19.4 billion, with comparable store sales increasing by 5.3%.
“In 2025, we made strong progress on our transformation initiatives,” said Michael Creedon, CEO of Family Dollar during a conference call discussing the retailer’s results. “We completed the sale of Family Dollar, continued to test, learn and sharpen our multi-price and merchandising strategy, modernized key operational capabilities and laid the groundwork for sustained execution against our long-term algorithm.
“That’s meaningful change for a 9,000-plus store system and validates our strategy, reinforcing that disciplined execution, clear priorities and operational focus are translating into stronger fundamentals and a durable long-term growth plan,” Creedon added. “Over the course of the year, we rolled out roughly 2,400 additional in-line multi-price stores, bringing the total to approximately 5,300 locations. While the distinction between our different store formats is becoming less pronounced as multi-price elements are integrated across all stores, our in-line multi-price stores continue to deliver meaningfully higher sales productivity than legacy formats, reinforcing the structural productivity benefits of the model as we scale.”
The move to multi-price doesn’t mean that Dollar Tree is abandoning value pricing; Creedon noted that approximately 85% of its opening price point assortment is $2 and below. “By maintaining $1.25 leadership and introducing more price points, we’ve increased flexibility, improved relevance and deepened basket potential through complementary new offerings, delivering thrill of the hunt wow value,” said Creedon. “And more than 80% of the assortment is unique to Dollar Tree, reinforcing the differentiated, discovery-driven nature of our model. We remain in the early innings of Dollar Tree’s multi-price evolution. The results we have achieved to date give us building excitement on the opportunity ahead.”
Competition for value-oriented shoppers is on the rise: discover the different strategies being pursued by Walmart, Target and Dollar General here.
