Dollar Tree will increase maximum price of items in stores to $7

A dollar won't go quite as far at Dollar Tree these days.

The maximum price of items in its stores will increase to $7 this year.

The retailer's CEO, Rick Dreiling, announced the change during an earnings call earlier this month. He said the increase is due to a wealthier customer base.

Dreiling said the company's fastest-growing customer demographic is people who earn at least $125,000 a year.

Dollar Tree announced that it will be closing 1,000 stores over the next several years after reporting year-end profits.

Three years ago, Dollar Tree raised the base price of its items to $1.25.

The company reported a net loss of more than $1.7 billion in the fiscal quarter ending Feb. 3. In response, it announced plans to close nearly 1,000 stores.