The "Dollar" stores

Dollar stores face challenge in recovery - Super-discounters have drawn more business in recession

Excerpt:

Dollar General, Family Dollar and Dollar Tree. The small-box retailers generally have seen sales pick up in the recession and their market has expanded beyond their traditional lower-income demographic. But as the economy improves they could face a problem hanging onto some of their newest customers, analysts say.

The companies will have to pay attention to areas where they sometimes have been lacking, including keeping stores clean and aisles clear. And in a rebounding economy they will have to overcome the perception that their goods are lower quality or less trustworthy.

“When you’re not feeling quite as financially strapped, you might get a little fussier about what it’s like to go into the store,” said Meredith Adler, a senior research analyst with Barclays Capital Equity Research.

Still, Adler said the dollar store segment is likely to benefit from the difficult economy for years to come, because many Americans are still struggling and others have adopted thriftier habits.

Comments:

• Family Dollar Stores Inc. (FDO)
  
• Dollar Tree, Inc. (DLTR)
  
• Dollar General Corp. (DG)
  
• Charted together
  

I don't think I've ever been in any of these stores. But look how the stock has gone up since January!