Discount retail giant Dollar Tree said that it would raise the price cap in its stores to $7 in its fourth quarter earnings call earlier this month.

"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.

A $5 cap was set in June, according to Yahoo Finance. In 2021 the company raised the base price of items to $1.25.

The higher cost items will include food, pet and personal care items, though not all items will be at the $7 price cap.

"Over time, you will also see us fully integrate multi-price merchandise more into our stores so our shoppers will find $5 bags of dog food next to our traditional $1.25 pet treats and toys, and our $3 bags of candy will be found in the candy aisle," Dreiling said.

Dollar Tree sees traffic from higher income consumers

Dollar Tree executives said on the call that the demographics of their customers trended towards higher income brackets.

"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 observation matches trends in the discount retail industry.

InMarket − a firm that tracks retail traffic − measured a 4% average increase in dollar store visits by consumers making more than $100,000, between the second half of 2022 and 2023, according to The Wall Street Journal.

Family Dollar stores closing this year

The company said that it would close approximately 600 locations under the Family Dollar brand this year in the earnings call. The company also announced the closure of approximately 400 Family Dollar and Dollar Tree locations over the coming years as leases expire in the earnings call and press release.

Local outlets have reported the closing of the following Family Dollar locations:

• Middletown, New Jersey: A banner at the Eastpointe shopping center reveals that the location is closing, according to the Asbury Park Press, part of the USA TODAY Network.
• Tallahassee, Florida: The store on West Brevard Street will close leaving four other Family Dollar stores available in the city, according to the Tallahassee Democrat, part of the USA TODAY Network.
• Peoria, Illinois: Two Family Dollar stores in the city will permanently close, according to the Peoria Journal Star, part of the USA TODAY Network.
• Lynchburg, Virginia: Two Family Dollar stores are closing in the city including the ones on Federal Street and Campbell Avenue, according to ABC affiliate WSET.
• East Liverpool, Ohio: The store at 15 Walnut St. in downtown East Liverpool is closing permanently on April 17. leaving many items 50% off, according to news outlet The Review.
• Slocomb, Alabama: The store at 534 Lawrence St. is among the Family Dollar locations set to close, according to local station WDHN.
• Wilmington, North Carolina: Employees said two Family Dollar stores will close in the Wilmington area, including one on Greenfield Street and Carolina Beach Road, according to location station WECT.
• Humansville, Missouri: The store on 200 E. Tilden will close and prices have been reduced to clear inventory, according to local TV station KY3.
• Willow Springs, Missouri: The Family Dollar store at 503 E. Main St will close and merchandise has been reduced by up to 90% according to local outlet Howell County News.
• Wichita, Kansas: The 13th Street and Broadway location will permanently close, according to local station KSN News.
• Clearwater, South Carolina: The Family Dollar store at 4403 Jefferson Davis Highway in Clearwater, South Carolina is closing and many items have 50% discounts, according to TV station WRDW.
• Elkins, West Virginia: The 388 Beverly Pike location store is having a 50% off sale ahead of its closure, according to the Inter-Mountain newspaper.

Dollar Tree opened 641 stores in the previous financial year, including 219 in its fourth quarter which ended in early February, the company said.

Dollar Tree operated 16,774 stores across 48 states and five Canadian provinces as of Feb. 3.

Dollar Tree stock

Contributing: Ahjané Forbes, Cheryl McCloud, USA TODAY NETWORK