INDIANAPOLIS — Inside stores boasting everything from muffin pans and men's trousers to cat litter and orange juice, you'll find the mayor's wife, a prominent lawyer and a well-off retiree from Carmel, Ind.
Sounds like the clientele of Saks Fifth Avenue, but it's far, far from that.
They are the frequent shoppers of their neighborhood dollar stores.
These days, Americans — from every walk of life — are taking their retail shopping experience to a new low. More than a third of consumers in a recent survey by America's Research Group said they now shop at a dollar store, the highest percentage in the nation's history.
In these tough economic times, consumers are trying to make every penny count. And the big three in the industry, Dollar General, Dollar Tree and Family Dollar, are watching sales soar as they reel in new customers and notice their regulars coming in more often.
"There are a lot of things going on out there that just mystify," said Britt Beemer, a retail analyst and founder of America's Research Group. "Come on. A third of Americans are now shopping at dollar stores? And they expect to shop there even more this year than they did last year."
That sounds about right to Briane House, a lawyer with Norris Choplin & Schroeder here and also chairman of the board of the Indianapolis Bond Bank.
You'll often find him browsing the pet food aisles at his favorite Dollar General, scooping up cans of Fancy Feast for his cat. He likes the deals on cleaning products, too. And he's been known to walk out of the store with an armload of golfing books for his buddies at the club.
"I say I'm cheap, but people say to call it frugal because it sounds better," he said. "Whatever you call it, I like to see quality and value."
As a regular at both Dollar General and Dollar Tree, House said he has noticed more shoppers walking through the doors lately.
"These are not great times," he said. "I do believe so many people are working reduced hours or they haven't gotten a raise, and they are very concerned about their security. People are interested in making every dollar count."
That philosophy is boding well for the industry.
Family Dollar just last month reported record first-quarter sales of $1.99 billion, a 9.5 percent increase from 2010. Comparable store sales jumped 6.9 percent, the best result in 12 years.
The Matthews, N.C.-based company said the rosy sales were a result of an increase in customer traffic, measured by the number of register transactions.
"What we are seeing is a lot of new customers but also regular customers coming in more often," said spokesman Josh Braverman. "What that signifies to us is people are buying at the need level versus the stock-up level."
Dollar General, which reported its third-quarter results in December, saw net sales jump 10.1 percent to $3.22 billion. Same-store sales rose 4.2 percent.
"Dollar General is having a great year," Chairman and Chief Executive Rick Dreiling said in a statement when results were released. "Even as the macroeconomic environment continues to be volatile for our customers, our strong results are top-tier among retailers."
In January, the company, based in Goodlettsville, Tenn., announced its largest expansion in four years, saying it would open 625 new stores in 2011.
