(Source: The Arizona Daily Star)

By Carmen Duarte, The Arizona Daily Star, Tucson
Nov. 30--Thrifty spending during this economic slump is leading shoppers to dollar bargain stores, which are cashing in while other retailers watch their stocks plummet.
Family Dollar and 99 Cents Only stores are doing well locally as they are across the nation because shoppers say they are saving their pennies.
The high volume of shoppers and the wholesale purchases by the bargain chains are behind the stores' booming success.
Family Dollar shares are up roughly 42 percent this year, said Josh Braverman, public-relations manager for the chain headquartered in Charlotte, N.C.
"Shoppers are buying needs, not wants," said Braverman.
The average purchase is roughly $10, and consumers are coming for name brands and the value that they get on those products, he said.
Imelda Ramirez, for example, was shopping at a Tucson discount store last week. She stopped at 99 Cents & Discount Mall at 502 W. Ajo Way to buy snacks and items for a trip to Nogales, Sonora, where she plans to stay until Christmas.
"I live in Phoenix and I shop at Family Dollar stores. I buy cleaning supplies, paper plates, makeup, canned goods and toilet paper. The money you save adds up," Ramirez said.
Family Dollar's retail net income for the fourth quarter of fiscal 2008 rose about 41 percent to $53.2 million, compared with $37.8 million for the fourth quarter of fiscal 2007, said Braverman.
There are 6,500 Family Dollar stores in 44 states, with 130 in Arizona, including nearly a dozen in the Tucson area.
Meanwhile, 99 Cents Only Stores, based in City of Commerce, Calif., reports that its retail sales increased by 9.2 percent to $276.4 million for the second quarter of its fiscal year, which ended in September, compared with the second quarter last year.
There are 311 99 Cents Only Stores in four states, with 27 in Arizona, four of them in the Tucson area.
The 99 Cents Only Store at 1675 W. Valencia Road is the second-busiest store in the state, said manager Larry Wilhite.
"We are about 25 percent, way up, over last year in sales. We receive thousands of shoppers a week," said Wilhite, as he watched customers lining up at the cash registers.
In addition to paper goods, household items and Christmas decor, people are buying groceries, including produce, deli, frozen foods and canned goods -- brand names at 99 cents or below.
"We receive trucked shipments of produce three times a week from our Los Angeles distribution center," Wilhite said.
Veronica Blanco, 31, with her children, Mylenka, 2, and Diego, 5 months, in tow, shopped there last week.
"This store is very cheap.