The uncertainty swirling around tariffs has cast a long shadow over America’s retailers, leaving many to wonder which companies will weather the storm and which might falter. While giants like Walmart and Target are already feeling the squeeze, a recent report from Truist analysts suggests that Dollar Tree, though not immune to the pressures, is better equipped than most to navigate the turmoil.
For many retailers, the threat is clear: tariffs, especially the steep 125% duties on Chinese imports, though lowered recently by 115%, have driven up the cost of merchandise and threaten already razor-thin margins. Walmart CEO C. Douglas McMillon didn’t mince words during the company’s May 15, 2025, earnings call, describing tariffs as an “immediate challenge” and conceding that the company simply couldn’t “absorb all the pressure given the reality of narrow retail margins.” He emphasized that while all tariffs create cost pressure, “the larger tariffs on China have the biggest impact.” According to McMillon, these pressures began in late April and only intensified through May.
Target, too, has taken action to shield itself. On May 21, 2025, Chief Financial Officer James Lee explained that the company halted its share repurchasing program in April due to “the magnitude and timing of potential tariffs,” a move made to protect the business “in the face of massive potential costs.”
Amid this turbulence, Dollar Tree has taken a different approach. The company has shifted its product mix, increasing the proportion of consumables—which are, according to the retailer, “virtually all domestically sourced”—to about half of its overall offerings, insulating much of its inventory from tariff impacts. Truist also highlighted Dollar Tree’s diverse customer base, a strength noted by Placer.ai in August 2024. According to reporting from GlobeSt.com, “Dollar Tree's repeat business is more modest but still notable thanks to diversified offerings at various price points, including consumables.” The data showed that in July 2024, 16.6% of Dollar Tree’s visitors returned at least three times, up from 13.9% two years prior.
Truist analysts believe Dollar Tree can “raise prices by leveraging its multi-price point assortment” and benefit from the flexibility that comes with not having rigid planograms, allowing the company to quickly adjust which products it sells. This adaptability, combined with successful negotiations around tariffs, gives Dollar Tree more room to maneuver than many of its peers. As Truist put it, “Given the newer nature of many of their MPP goods and lack of planograms, we think Dollar Tree actually has more flexibility to deal with tariffs than many other retailers.”
Still, the bank cautioned that Dollar Tree isn’t entirely shielded from tariff-related challenges, pointing to “unexpected headwinds in 2Q” as evidence that even the most agile retailers can’t escape the effects entirely.
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