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10 Recession-proof Businesses

4

Discount Retail

woman shopping at dollar store
A woman shops for clothes outside of a dollar store in Brooklyn, N.Y. Spencer Platt/Getty Images

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Walmart has more than its fair share of critics. The superstore has spread across the world quickly, knocking off smaller competitors in its path. But no matter what you think of its business tactics, low prices trump politics during a recession. While nearly every other large American retailer suffered significant losses in the first months of 2009, Walmart reported a 5.1 percent increase in profits, more than doubling Wall Street's expectations of 2.4 percent [source: Reeves]. Walmart first surpassed $400 billion in sales during its 2008-2009 fiscal year [source: Rosenbloom].

Not surprisingly, dollar stores and thrift stores also thrive during recessions. The three biggest American discount chains — Dollar General, Family Dollar and Dollar Tree — became Wall Street darlings during the recession as they each added thousands of stores from 2008 to 2012 [source: Zimmerman]. The share price of Dollar Tree, for example, increased 200 percent from 2008 to 2011 [source: Randall]. Thrift stores and trendier "resale" shops also drew in new customers. According to the America's Research Group, 20 percent of people in 2012 said they shopped at thrift stores "regularly," up from 14 percent in 2008 [source: Tully].

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