TIGHTWADS LOVE DOLLAR SHOPPING.

Byline: Barbara Correa Staff Writer

Attention bargain shoppers: You don't have to be broke to shop cheap. Discount retail stores like 99 Cents Only, Dollar Tree and Big Lots - the country's largest closeout chain - are working hard to attract upper- and lower-income patrons alike. And they're finding that people with some means are frequently the biggest penny pinchers around.

``We're like the millionaire's dirty little secret,'' said Eric Schiffer, president of Commerce-based 99 Cents Only.

He said the company started out 20 years ago figuring its appeal would be greatest in blue-collar neighborhoods. But its best-performing store is just a few blocks east of Beverly Hills city limits.

``The upscale, educated consumers are the toughest people to get in the first time, but once they come in they're our best customer.''

To be sure, the sector still carries a stigma for some shoppers. But deep-discount retailers have found a way to lure higher-income patrons by stocking more recognizable brand names.

In the past five years, the number of individual stores that fall under the category of closeout retailers - stores that buy merchandise from manufacturers who want or need to reduce inventory in a hurry - has roughly doubled. That growth has put the sector on the radar screen of national vendors like Procter and Gamble, Hershey's and Kimberly Clark.

That's why Big Lots - the name replaced Pic `N' Save last year - can sell brand-name makeup sponges for 98 cents and 1999 Nathanson Creek Sauvignon Blanc for $2.99.

Responding to the proliferation of cheaper alternatives, drugstore chains like Savon have established value rows selling cookies, crackers, flip-flops and socks at about 99 cents.

Managers in grocery store chains say their offerings beat out anything available at dollar stores, but customers disagree.

``It's the same stuff, only cheaper,'' said George Watson, a software sales representative in Los Angeles who recently discovered 99 Cents Only stores' gourmet section, which carries products like Gulden's mustard and buffalo wing sauce.

Watson acknowledges that he doesn't have to shop at 99 Cents Only for the savings. But he likes the store and likes getting a good deal.

``After the stock market crashed, any cachet there was to spending too much on something was gone,'' said Watson. ``The era of conspicuous consumption is now viewed as foolish.''

CAPTION(S):

2 photos, drawing

Photo:

(1 -- 2) Tony Dinio, above, stocks shelves in the Dollar Tree store in West Hills, where shoppers are lured by bargains. A shopper's basket, left, overflows with items. Paper goods are favorites of discount retail shoppers.

Evan Yee/Staff Photographer

Drawing:

(color) no caption (Shopping cart, retailer logos) Warren Huskey/Staff Artist