Discount Retailers Score in Down Economy

ENCINO, CA-With consumers watching their wallets ever more carefully, some say discount retailers are poised to reap what rewards are to be had in the current economic environment. “As consumers grow increasingly cost-conscious, opportunities are emerging for discount retailers,” notes the recently released first half 2009 Single-Tenant Outlook retail research report from Marcus & Millichap’s research services group.

Indeed, as the report notes, Goodlettsville, TN-based Dollar General Corp. has plans to open 450 new stores, which it says it expects to create as many as 4,000 new jobs. “Our growth will add positions in many markets severely hit by the recession,” Dollar General senior vice president and “chief people officer” Bob Ravener says in a recent announcement. The company’s same-store sales in February 2009–the most recent period reported–were up 15.1% over the prior year.

Family Dollar Stores Inc., based in Matthews, NC, has also seen business increase. Its comparable store sales for the second quarter of its fiscal year (which ended February 28) were up 6.4% from a year earlier. “In today’s challenging economic environment, families of all incomes are looking for ways to save money,” chairman and chief executive officer Howard Levine said recently. “Our strategy of providing both value and convenience continues to resonate well with consumers.”