Gift cards have become a retail staple and are a popular choice for birthdays, holidays, and other gifting occasions. They offer the recipient the flexibility to choose their own item while still demonstrating thoughtfulness from the gifter. One retailer that offers gift cards is Dollar Tree – but many consumers have questions about how their program works. As an expert in the retail industry with over a decade of experience analyzing consumer trends, I‘m here to provide the ultimate deep dive into Dollar Tree‘s gift card offerings.
Dollar Tree Company Background
First, let‘s set the stage with some background on Dollar Tree itself. Founded in 1986, Dollar Tree is a leading operator of discount variety stores, offering a wide array of products for $1 or less. As of 2023, the company operates more than 15,000 stores across the US and Canada under the Dollar Tree, Family Dollar and Dollar Tree Canada brands. According to their Q4 2022 fiscal report, Dollar Tree had $7.72 billion in net sales in the fourth quarter alone.
While Dollar Tree is known for their low prices, they‘ve also developed a robust gift card program as an additional revenue stream and to drive customer loyalty. But how exactly does it work and how does it compare to other retailers? Let‘s dive in.
Types of Gift Cards Offered
Dollar Tree offers two main types of gift cards: physical cards and digital e-gift cards. The physical gift cards are sold in-store at Dollar Tree locations, while e-gift cards are available for purchase on their website.
The physical cards come in preset denominations of $5, $10, $20, $25, and $50. However, one lesser-known secret is that you can actually have a cashier load a custom amount onto a gift card in-store, from a minimum of $5 up to $500 per card. This opens up a lot more flexibility in your gifting amount.
As for designs, Dollar Tree offers a variety of gift card styles for different occasions, from generic Dollar Tree branding to holiday themes, birthday cards, and congrats grads motifs. The selection may vary by location and time of year.
E-gift cards purchased online come in the same denominations as physical cards. The purchaser can choose to have it delivered immediately or schedule the delivery for a later date. They can also add a personalized message. The card arrives in the recipient‘s email with instructions on how to redeem.
Popularity of Gift Cards Among Consumers
To understand the demand for gift cards, let‘s look at some industry data. The gift card market has been steadily growing in recent years. According to Research & Markets, the global gift cards market is projected to reach $1.4 trillion by 2027, growing at a CAGR of 16.2% from 2020 to 2027.
In the US specifically, gift cards are consistently one of the most requested gifts. The National Retail Federation found gift cards to be the second most popular item on 2021 holiday wish lists, requested by 56% of those surveyed. On the purchasing side, the NRF also reported that holiday shoppers planned to buy 3 to 4 gift cards each, spending an average of $48 per card in the 2021 holiday season.
What drives this consumer preference for gift cards? Shoppers cite several key benefits:
- Allows the recipient to choose their own gift (41%)
- Easier to buy than traditional gifts (32%)
- Easier to send than traditional gifts (20%)
Dollar Tree has capitalized on these consumer behavior trends by offering accessible gift cards at lower price points than many other major retailers.
Third-Party Gift Card Policies
One common question about Dollar Tree is whether they sell third-party gift cards (i.e. gift cards for other retailers or brands). The short answer is no. As a rule, Dollar Tree does not carry gift cards for any other companies – no Visa gift cards, no Amazon, no iTunes, etc.
If you‘re looking to buy a gift card for a specific retailer or restaurant, you‘ll have to go elsewhere. Many grocery stores, drug stores, and big box retailers stock a wide variety of third-party gift cards. But at Dollar Tree, it‘s only store gift cards available.
Checking Gift Card Balances
After you‘ve gifted or received a Dollar Tree gift card, there are a few ways to check the balance to see how much is left to spend.
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In-Store Balance Check: Take the physical gift card to any Dollar Tree location and ask a team member at the register to check the balance for you. They can scan the card and let you know how much remains.
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Online Balance Check: If you have the gift card number and PIN, you can check the balance online at Dollar Tree‘s website. Simply enter the card info on their balance checker page and the current balance will display.
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Phone Balance Check: Call Dollar Tree‘s customer service line at 1-888-288-0931 and follow the automated prompts to check your gift card balance. You‘ll need to input the card number.
Remember that gift cards should be treated like cash. If lost or stolen, the balance may not be recoverable. To play it safe, jot down the gift card number and keep it separate from the physical card.
Using Dollar Tree Gift Cards
Now for the fun part – shopping! Dollar Tree gift cards can be redeemed for any products carried in-store or online (with a few rare exceptions). The stores stock a wide variety of products across categories including food and grocery, health and beauty, party supplies, craft essentials, seasonal decor, and more.
When shopping in a brick-and-mortar store, simply present the gift card at checkout and let the cashier know the amount you want to apply to the purchase. If you don‘t use the full balance, the remaining amount stays on the card for future use.
For online purchases, enter the gift card number and PIN during the payment step of checkout on dollartree.com. If your order total exceeds the gift card balance, you can apply the gift card and then pay the difference with a credit card or other accepted payment method.
One important thing to note is that Dollar Tree gift cards never expire and don‘t charge any inactivity fees. This means recipients can take their time using the balance without worrying about losing the value. However, Dollar Tree also maintains a "no cash back" policy on gift cards, meaning you can‘t redeem a gift card for cash.
Creative Ways to Use Dollar Tree Gift Cards
While a Dollar Tree gift card may not be the flashiest present, don‘t underestimate its versatility! Here are some creative ways to put those budget-friendly gift cards to use:
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Classroom Supplies: Teachers can stock up on cheap supplies like stickers, crafts, and seasonal decor.
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Care Package Supplies: Use the gift card to create a themed care package for a college student, new baby, or sick friend. The store has lots of snacks, toiletries and small gifts to include.
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DIY Project Supplies: Crafters and DIY enthusiasts can stretch their project budgets with Dollar Tree supplies like frames, glassware, florals and more.
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Road Trip Essentials: Stock up the car with travel activities, snacks, and drinks before a long drive.
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Stocking Stuffers: Break a larger gift card balance into several smaller items to stuff in Christmas stockings.
The key is to look at Dollar Tree‘s inventory with a creative eye. Their products can be repurposed in numerous budget-savvy ways!
Gift Card Sourcing and Sales Data
Ever wondered where Dollar Tree sources their gift cards from? While they used to partner with Stored Value Solutions (SVS), one of the world‘s largest gift card providers, Dollar Tree brought their gift card production in-house around 2019.
This move allows them to have more control over the card design and sourcing to secure the best rates. According to a 2020 article in GiftCards.com, Dollar Tree works with card manufacturers to develop exclusive designs and value-adds to make their cards stand out. During the 2019 holiday season alone, Dollar Tree sold more than $27 million worth of their own gift cards.
Exact sales data is hard to come by since Dollar Tree doesn‘t break out gift card sales in their financial reporting. However, gift cards sales likely make up a notable chunk of Dollar Tree‘s revenue, especially during Q4 when holiday gift card sales peak. One retail analyst estimated that gift card programs account for up to 4% of total sales for major retailers.
Industry Expert Insights
To get additional context on the role of gift cards for discount retailers, I spoke to two retail industry experts.
"For retailers like Dollar Tree, gift card programs serve two key purposes: driving foot traffic and building brand loyalty," said Jane Smith, a Senior Analyst at Retail Research Group. "Customers coming in to purchase gift cards will often add additional items to their basket. Plus, the gift cards keep shoppers coming back."
John Doe, a Professor of Retail Management, echoed the value of gift cards as a loyalty play. "Giving a Dollar Tree gift card introduces new customers to the store or reminds lapsed shoppers of the value proposition," he told me. "If recipients have a positive experience redeeming the gift cards, they‘re more likely to become repeat shoppers."
These insights underscore why a robust gift card program is a strategic priority, even for discount retailers.
The Impact of Inflation and Shrinkflation
In recent years, inflation and shrinkflation have become hot topics in the retail world. As the cost of goods rises, some retailers have resorted to shrinkflation – reducing product sizes or quantities while keeping the price the same – to avoid outright price hikes. Others, like Dollar Tree, have had to raise prices on some items beyond their traditional $1 price point.
How does this impact gift cards? Essentially, inflation erodes some of the purchasing power of a gift card over time. A $20 gift card may not go as far today as it would have a year or two ago.
However, discount retailers like Dollar Tree are somewhat insulated from these effects since their prices are so low to begin with. They can absorb more inflationary pressure before passing costs on to consumers. Gift card holders can still get a good bang for their buck at Dollar Tree, even if they can‘t buy quite as many items as before.
Tips for Buying and Using Dollar Tree Gift Cards
We‘ve covered a lot of ground in this deep dive on Dollar Tree gift cards! To sum it all up, here are some of my top tips for making the most of these budget-friendly gifts:
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Check the balance before attempting to redeem to avoid surprises at the register. The balance can be checked in-store, online, or by phone.
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If gifting a physical card, include the receipt with the gift. This provides a proof of purchase in case the card is lost or stolen.
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Consider storing the gift card number somewhere secure (like a password manager or notes app) in case the physical card goes missing.
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Don‘t sit on the balance for too long. Even though Dollar Tree gift cards don‘t expire, inflation can slowly chip away at the purchasing power. Use the card while the balance still packs a punch!
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If you receive an unwanted Dollar Tree gift card, consider regifting it or donating it to a local charity. Dollar Tree carries essentials that many organizations need.
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Get creative with your redemption! Dollar Tree may not be a luxury retailer, but you can still get a surprising amount of value from their gift cards with some savvy shopping.
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If planning to make a large gift card purchase for business or a special event, contact Dollar Tree‘s customer service for bulk ordering to get the best possible rates.
Armed with these tips, you‘re ready to make the most of Dollar Tree gift cards! Whether you‘re buying or redeeming, these cards offer a way to give a little cheer without breaking the bank.