AutoZone

Gross margin structure remains strong for a retailer at 52.6 percent for FY25, aided by private label penetration and mix, but the company is not insulated from competitive pricing or cost pressures. FY25 margin was pressured by a 55 bps non‑cash LIFO charge and higher shrink, partially offset by higher merchandise margins.

AutoZone typically balances pricing with service and availability to preserve unit economics, and commercial growth can support better vendor terms over time. Pricing power is real but not monopolistic and can be cyclical around LIFO, shrink and freight.