For shoppers looking for bargains, discount retailers offer a great way to buy thriftily. Wholesalers and deep-discount stores offer a wide variety of products, often in bulk, for extremely cheap prices.

During times of economic recession, more and more consumers turn to discount retailers. Getting the biggest bang for your buck is necessary when income is being stretched thin by higher prices and lower employment rates.

That’s why I want to draw your attention to two deep-discount retailers. The performance of this segment of retailers has consistently strengthened and will continue to do so in the coming months. Of course, as in any sector, some companies are better investments than others. Here’s a snapshot view of two competing discount retailers.

The Dollar Darling

One of my favorite deep-discount investments right now is Dollar Tree (NASDAQ:DLTR). For more than fifty years, the company has offered customers one-stop bargain options. Today, you can go into the store and pick up everything from gift wrap and toys, to cleaning products and dishware to school and office supplies. The kicker: Everything has a price tag of $1!

Saying it’s hard to find a better deal elsewhere is really an understatement.

Dollar Tree’s variety and cheap pricing has sent customers flocking to its 4,000 locations throughout the U.S. A pickup in sales has boosted the stock’s value and drawn investor attention during the past few months. DLTR is up almost 60% in the past year and 40% in the past six months.

It’s no secret why the company has been “A”-rated in Portfolio Grader for the last year.

Dollar Deals for the Whole Family

Another popular dollar-discount chain is Family Dollar (NYSE:FDO). Like Dollar Tree, Family Dollar offers a diverse assortment of products for low prices.

Since the company opened its doors in 1959, the Family Dollar chain has grown to over 7,000 stores across 44 states. The discount retailer offers customers everything from clothing and accessories to home decor to grocery products. And all of their products are bargain-priced in rounded-dollar increments, usually below the $20 mark.

If you are looking for good shopping deals, the Family Dollar really does offer something for the whole family. As an investment, FDO also proves to be a solid steal.

The company reported its latest quarterly earnings today, and fourth-quarter profits grew a whopping 8%. For the full year it is expected that the stock will be up over 17% from 2010 values, a tidy pickup considering current conditions.

FDO definitely has its merits as a discount retailer, but when it comes down to it, DLTR is a much better retail stock. Overall, cheaper store prices and stronger growth potential (21.3% vs. 17.9%) for the year make Dollar Tree a more solid, long-term investment heading into the holidays.