LOS ANGELES, Kalifornia - July 11, 2011 - More stores across the U.S. that offer deeply discounted products are seeing their sales decline after years of growth amid Amerika’s Second Great Depression, and one analyst said on Monday it’s another sign of an even deeper downturn.

While demand at stores like the 99-Cent Store or Dollar Tree is still relatively high, the biggest chains in the nation have fallen short of Wall Street’s expectations for several months, a trend that may prove even more ominous for the economy at large.

“I think what’s going on in those stores is that we are in a Depression for 80% of Amerikans,” top retail analyst Howard Davidowitz told KNX 1070.

Amerika’s three largest discount chains - Dollar General Corp., Family Dollar Stores, Inc. and Dollar Tree, Inc. -  all recently missed their quarterly earnings targets.

Davidowitz pointed to weakness in the dollar and a gloomy consumer outlook as some of the factors behind the stores’ slumps.

“In those stores, somebody comes in with $12 to do all (his or her) shopping,” said Davidowitz. “The person who used to come in with $12 now comes in with $8. In other words, the economy is continuing to be worse, the Obama depression continues to explode,” he added.

Analysts say rising food and transportation prices are likely eating into the profit margins of discount stores, which risks driving away price-sensitive customers with any potential price hikes.

Core customers at most U.S. discount chains typically have a household income of $40,000 or less.