But would people still shop at dollar stores if they had more money? I sort of think so--New York is incredibly prosperous, and there are dollar stores everywhere, visited by rich and poor.
What I see time and again our little towns that are too small to support even a Walmart or a grocery have one or two Dollar Generals. I'm not an economist and not sure what to make of that other than that a Dollar General seem to be pretty cheap to set up pretty cheap to stock and I guess and implicit acknowledgement that these markets are failures for anything other than dinky stores.
(edit: android voice to text mistakes)
OTOH in Indianapolis we also have dollar stores but not everyone uses them.