The $52 billion dollar-store industry has been expanding as middle-class shoppers trade department stores and supermarkets for extreme discounting. Dollar-store sales have grown 4.3%, on average,
in each of the past five years, said Justin Waterman, retail analyst for IBISWorld in Santa Monica.
“That’s extremely high in light of the recession in 2008 and the negative
consumer sentiment in 2009,” Waterman said. “Any time there’s a slump in the economy, this industry picks up, because consumers are more price conscious.”
Meeting that
demand are publicly traded companies like 99 Cents Only Stores, Dollar Tree, Dollar General and Family Dollar, which have acquired smaller chains, as well as many mom-and-pop stores. They compete with
Target and Walmart as well as supermarkets with smaller, convenient locations, often in urban areas.
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