Litchfield soon will be home to a new discount store.

Construction of a Dollar Tree store has begun on a lot located just to the south of the Wal-Mart Supercenter along U.S. Highway 12 East in Litchfield.

“We’re very excited,” said Shelly Davis, a spokesperson for Dollar Tree Inc., a national chain with headquarters in Chesapeake, Va. “We like to be where Middle America is.”

Davis said she could not confirm a store opening date, because the decision to build in Litchfield is still so new. However, if all goes right, the store, which she said would be about 8,000 square feet, could be open by fall.

Dollar Tree typically opens stores in the 10,000 to 15,000 square foot range, with a preferred store size of 12,500 and at least 70 feet of store frontage, according to the company’s Web site. All Dollar Tree stores embrace the same philosophy, the company says: “Bright Stores, Big Signs and a Clean Environment.”

The location along Highway 12 seems to fit the Dollar Tree philosophy of locating its stores in regional centers anchored by “big box” stores or dominant grocery stores. The company also looks for shopping centers that are “highly visible and with strong traffic counts.”

Davis admitted that she gets questions all the time about why the company would open a store right next to a powerful discount chain like Wal-Mart or Target.

“The simple answer is, it’s good foot traffic,” Davis said. “We don’t mind co-locating in a Wal-Mart, Target or grocery store chain (development). The majority of our stores are in strip (malls).”

Dollar Tree Inc. has stores in all 48 contiguous states. The closest Dollar Tree store in this area is located in the Hutchinson Mall.

The company’s stores boast party supplies, housewares, seasonal decor, candy and food, toys, health and beauty care, gifts, stationery, books and other items — all priced at $1. The stores’ merchandise is constantly turning over, an effort, according to the Web site, to “create an environment where our customers can discover new treasures every week.”

“We believe we’re relevant and right for the times,” Davis said.

The company added in recent years a “teacher corner,” Davis said, in response to the growing trend of educators having to supplement their classroom budget with their own money.

With everything priced at a dollar or less, the stores are extremely popular with the budget conscious shopper, she said. The target market for Dollar Tree is a female with a household income of just under $50,000 — although “there are other pockets of consumers that are very strong with us.”

In May, the chain reported total sales for the first quarter of 2008 were $1.051 billion, a 7.8 percent increase over the company’s 2007 fiscal first quarter. Sales were driven, the company said, by food, health and beauty care, and party supplies.

"Sales were strong throughout the quarter and exceeded guidance," President and CEO Bob Sasser said in a May news release. "Dollar Tree is relevant for these challenging times. When customers are pressured by rising prices, they know that we have the things they need and want for just $1, everyday."

Dollar Tree operated 3,474 stores in 48 states as of May 3, compared to a total of 3,280 stores in 48 states a year ago. During the first fiscal quarter of 2008, the company opened 83 stores, closed 20 stores and expanded or relocated 24 stores. The company's retail selling square footage totaled approximately 29.1 million at May 3, a 7.8 percent increase compared to a year ago.