Dollar stores rival Walmart - here's why

An article on BNET earlier this year suggests that, despite the best efforts of retailers like Aldi and Walmart to entice lower-income consumers to spend more in their stores, dollar stores are proving a worthy rival.

People who started shopping at Dollar Tree and 99-cent Only Stores out of necessity, are continuing to frequent them even as the country emerges from the recession. Consumers seem to be buying more everyday needs such as food, dish soap and paper towels in dollar stores and they drop by more often.

For Dollar Tree, consolidated net sales for the second quarter were $1.38 billion, a 12.7% increase compared to $1.22 billion reported for the quarter ended August 1, 2009. Retail sales for 99-cent Only Stores increased by 4.6% to $336.6 million and same-store sales increased 2.7% so far this year.

According to a report from Bloomsburg Businessweek, Dollar General and Family Dollar also continue to grow, even as Walmart begins to lose ground.