On the corner of Grant and Euclid in Tucson, Arizona, three dollar stores compete with each other and the grocery store for business. In Tucson alone, there are over 150 dollar stores and more companies are moving here monthly.
Discount businesses, i.e. Dollar Stores and thrift stores suffer during sound economic times, when consumers have more money in their pockets -- or have more credit available to them. As a result, dollar stores end up losing customers to larger, more expensive stores that offer nationally recognized brands. However, when the economy tanks, thriftiness becomes more appealing and sensible. Dollar stores' coffers are replenished as consumers start searching for cheaper items.
In general, dollar stores keep prices low through cost-cutting measures. Dollar Tree, the only national chain that sells items for a dollar, cuts costs by selling items in smaller sizes and spreading out deliveries through the week. Other chains and independent stores have taken to selling some merchandise for one dollar and others, like national brands, for near-traditional retail prices. And some items, like big-ticket electronics, simply aren't found in dollar stores unless they've been liquidated as part of another company's stock. Once items like these are gone, they're gone, which can make shopping for these particular items at dollar stores a hit-or-miss proposition.
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