Dollar Store Profits Soar Despite Tough Times
EL PASO- The recession has left few places untouched, and that includes retail giants like Walmart. But a smaller group of stores has figured out a way to weather the storm. Reporter Matt Rivers has more.
Dollar stores are doing well. The cheaper retailers have posted gains across the board, as consumers find different ways to save money.
Jesse Diaz came for a pacifier. His son needed one, and the first place he thought to go was the Dollar General on McCombs.
"It's faster, you just come and get what you need and there's not much lines like in Walmart and some other places," Diaz said.
After a few minutes searching, he found it, and checked out. The total cost was two bucks. Dollar stores across the country are seeing more customers like Jesse, coming in to buy everything from detergent to Doritos.
Despite its name, not everything at Dollar General is just a dollar. But they do sell products just a little bit cheaper than the big name stores.
That's the reason why stores like this one have done so well during the recession.
That's in stark contrast to bigger retailers like Walmart, who've seen sales drop. But Dollar General can keep prices lower thanks to smaller stores and fewer employees.
It's a model followed by other dollar stores, and it's working.
"And as a result of those initiatives they put into place two years ago, we are now in a position to accelerate our growth," said Tawn Miller of Dollar General.
To the point that 625 stores are set to open next year, creating about 6000 jobs. And for added proof of success, check out Dollar General's stock. It's up 33% since the end of 2009.