Dollar Tree, Christmas Tree Shops Outgrow Their Names

So when the company opens a new store in Holyoke, Mass., in March, it plans to abbreviate its moniker to CTS to avoid the perception that it just sells items for the holiday. It plans to change the name on all stores over the next two years.

The name on the outside of a business is supposed to last forever. That is rarely true about what’s inside.

Companies for decades have had to confront the reality that their businesses had outgrown their names. Some, such as 7-Eleven and RadioShack, stayed put, even though most 7-Eleven stores are now open 24 hours a day and RadioShack sells far more than just radios.

The issue cropped up again this week when Dollar Tree Inc., said that a growing number of items at a chain known for selling everything for $1 will in fact cost more, perhaps $1.25 or $1.50, as input costs rise due to supply-chain snarls and a tight labor market.

Dollar Tree long ago aimed to have the flexibility to sell items at multiple low prices, executives have said. The company changed its name from Only $1 in 1993 “to address what could be a multi-price-point strategy in the future,” according to the company’s website.

“Our brand promise is that customers get great value for what they spend at Dollar Tree, regardless of the price point,” said company CEO Michael Witynski in a statement Tuesday announcing the pricing change. Dollar Tree has no plans to change its name, a spokesman said.

“I’m not sure why they would want to mess with a good thing,” said April Straus, a Dollar Tree shopper, of the chain’s pricing change. The 39-year-old from Destin, Fla., said that theoretically a store’s name should tell you what it sells, but added that maybe it doesn’t matter. “ Starbucks is popular coffee, but no one knows what that name means,” she said.

The proliferation of the idea of a variety store selling everything in stock at fixed prices can be traced back to Frank Woolworth, who started out with his first “Great 5-Cent Store” in upstate New York in 1879. Early on, Mr. Woolworth expanded to include items for 10 cents—and the classic five-and-dime was born.

The business boomed and within a few decades F.W. Woolworth Co. had hundreds of stores. The rigid pricing policy didn’t stick. By 1935, the company had abandoned its price limits. (Adjusted for inflation, those prices would be equal to $1 and $2 today.)

Other dollar-store chains, a concept created as classic five-and-dime retailers became less relevant, long ago moved on to offer products priced higher than $1 as their costs rose. The first store at Dollar General Corp. , opened in Springfield, Ky., in 1955, and the concept was simple—“no item in the store would cost more than one dollar,” says the company’s website. That model shifted decades ago and the retailer’s roughly 17,600 U.S. stores now sell items at multiple price points, often in five-cent increments to make it easier for shoppers to calculate the total price of their purchase.

The 99 Cents Only Stores, a City of Commerce, Calif.-based chain, added some higher-priced items over the past decade but kept the name. “We have maintained our trademarked name to prevent customer confusion,” its website says.

Five Below Inc., so-named because it mostly sells items for $5 or less, added a new section last year in stores and online called Five Beyond that sells goods for $6 and up. Five Beyond will be in about one-third of the chain’s roughly 1,100 stores by year-end, according to a spokeswoman.

Burlington Stores Inc. started as a wholesaler of women’s coats in 1924. But in 2009, it dropped “Coat Factory” from its name to better reflect its varied merchandise, including clothing, shoes and accessories for men and women, home décor and pet supplies, according to a spokeswoman. As of January, coats accounted for just 5% of its $5.8 billion in annual revenue.

Change is hard. Some customers hated it when Dunkin’ Brands Group Inc. dropped the “Donuts” from its brand and store name, shortening the brand to just Dunkin’. The company felt it better represented the sales makeup of the company: mostly drinks, not doughnuts.

Some companies aim to hide a part of their business that has become less appealing over time. Weight Watchers rebranded its stores and logos in 2018 to WW, aiming to shift its image away from helping people lose weight toward general health and wellness.

Christmas Tree Shops never limited itself to Christmas fare.

The chain started out 51 years ago selling candy, small gift items and décor—but the founders named it for its “fun Christmas-like atmosphere,” Mr. Salkovitz said. The result is that most shoppers, particularly those who don’t live in the northeast, aren’t aware of the breadth of its selection.

The new branding will include the phrase “Every Season, Every Reason,” followed by “Christmas Tree Shops” in smaller letters.

Write to Sarah Nassauer at [email protected] and Suzanne Kapner at [email protected]