Dollar Tree

Observed behavior shows real, if bounded, pricing power. Management raised base-price points above $1.25 on selected items in 2025 while simultaneously expanding higher tiers ($3, $4, $5 and select items above) without cratering traffic, with Q3 FY2025 Dollar Tree comps up 4.2% and ticket up 4.5%.

That said, customer sensitivity is visible in social forums, and price signage complexity creates friction. The company’s statement that 85 percent of SKUs remain at $2 or less mitigates elasticity risk. Tariffs are a headwind but management has partially offset with sourcing and mix.

Net, pricing power is better than a typical discounter due to format evolution, but not in the class of monopolistic tollbooths.