Even before the economy tanked, discount stores, or dollar stores as Americans call them, were looking healthy. Now their profits are rising like helium-filled balloons. Dollar Tree, a Virginia-based chain of dollar stores, had sales of more than $1.39 billion in the fourth quarter of last year, a 6.8 % increase over the year before. For the whole of 2008, Dollar Tree, which has been in business since 1953, notched up record sales of $4.64 billion.rnFamily Dollar is prospering, too. The market value of this company, based in North Carolina and with more than 6,600 stores in 44 states, rose 36% last year. Other dollar-store companies have also reported big profits.rnDollar stores sell everything from sweets and toys to linens and household cleaning products. Contrary to popular belief, not every item in the stores costs a dollar. But all the items, most of which are generic, are still cheaper than they would be in grocery or drug stores. Companies achieve this by buying in bulk, by keeping costs low and by avoiding expensive national advertising, especially on radio and television, and instead send out circulars every month to local customers.
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