The uncertain macroeconomic landscape has caused consumers to rein in their spending and search for value. This has been a boon for off-price retailers in the consumer discretionary sector like The TJX Companies Inc. (NYSE: TJX) and Ross Stores Inc. (NASDAQ: ROST) but a detriment to the deep discount retailers like Dollar Tree Inc. (NASDAQ: DLTR) and Dollar General Co. (NYSE: DG). With deep discount dollar shops, you typically get what you pay for: low quality for low prices. Consumers want quality at a value that translates into premium brands at discounted prices. However, the tide may be turning with the dollar stores, as indicated by improving bottom lines and stock prices, causing investors to ponder if it's time to get back into Dollar General and Dollar Tree shares.
