The dollar store economy. From Marketplace, I'm Nancy Marshall Genser in Washington.

Dollar General reports earnings tomorrow. The company's stock already jumped last week after one of its

rivals, the Dollar Tree, reported a great first quarter. Its comparable store sales were up 3.5%. This hints

at a growing consumer demand for deals. So we asked Marketplaces

Stephanie Hughes to check in on the dollar store ecosystem. Dana Kenlin has been in the market

for some travel-sized toiletry bottles. She could have got them at the drugstore that's 20 feet

from her house. But instead, she went out of her way to drive to this

dollar tree in East Baltimore. And you looked up the prices for both of these before you came in?

Actually, I did. I get paid Friday, so I'm trying to just limit the things that I buy until

Friday. Kenlin works as a security officer. She's also a single mom who keeps to a pretty strict budget.

And she says shopping here helps.

I just feel relieved.

I guess more so like I'm not really overspending on certain things.

Another advantage to dollar stores, they're usually close to where people live, says Bloomberg

intelligence analyst

Jennifer Bartasius. And so it's a very easy, quick place for people to stop and pick up a few

essentials without having to drive a long distance. Which is particularly attractive right now

with elevated gas prices. Bartasasas says dollar stores now offer a bigger assortment of items. Think craft supplies,

tools, graduation balloons. And they're also pulling in higher income consumers looking for deals.

And so the question will be for these chains going forward, how do they hang on to those

higher income households who have the capacity to spend more when they're in the stores.

And how do they get those big spenders to pop in more often?

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