(Source: Richmond Times - Dispatch)
Wanda Hudson walked out of a downtown Richmond Dollar Tree store with a bottle of soda, two "space-saving" storage bags, a set of disposable gloves and freezer bags. Her bill before tax: $4.
As the economy weakens, markets tumble and jobless rates rise, people are looking for bargains. But as with all purchases, let the buyer beware.
Dollar stores and discount retailers are a good way to stretch your dollars, said Bruce McClary, spokesman for ClearPoint Financial Solutions Inc., a nonprofit credit-counseling firm based in Henrico County.
Shopping at Dollar Tree has always been a way to save money, but given rising prices "it's even better now," said Karen Woolard, a retiree in Chesterfield County. A customer for 10 years, she said she shops at a store on Iron Bridge Road at least twice a month and regularly buys shampoo, canned vegetables and gift baskets.
Her father, Tom Smith of Richmond, said he does the majority of his shopping at Dollar Tree.
"Why would I spend $2.99 on mustard at the grocery store when I can get it here for a dollar?" he said.
By their nature, stores that sell items at very low prices may be some of the few retailers holding steady or even growing in this economy.
"At this point, many of the major dollar stores are in a good position," said Ellen Davis, vice president of the Washington-based National Retail Federation. "[They] may be affected in a positive way because people may be trading down looking for items."
Dollar Tree, where "Everything's $1.00," is doing well. During the second fiscal quarter this year, which ended Aug. 2, earnings for the Chesapeake-based retailer rose 15 percent from the same period last year.
Profit was $37.6 million, compared with $32.6 million a year earlier.
"Dollar Tree has become a source for millions of people as they balance their budgets," President and CEO Bob Sasser said during a meeting with analysts Tuesday. The company did not return several calls seeking comment.
Closeouts, bulk goods, items with outdated packaging, off-brands and food nearing the expiration date - these fill extreme discounters' shelves.
The assortment is wide: cleaning supplies, holiday decorations, craft items, toys, food, books, candy, knick-knacks.
"You save a lot on your household cleaning items," said Hudson, who shops for hers at Dollar Tree.
Some items are a steal. Others are not. And then there are the 100-penny gems and oddball pieces.
One gallon of Crystal Geyser natural spring water might be considered a bargain.
