When Tom Ellis purchased the Meadow Mall from the Savings Bank of Maine nearly two years ago, he had in mind to open a Family Dollar store, just as he had done 21 times before in Maine.

“It's a good business in Maine. It's a good business all over the country,” Ellis said.  

With more than 7,500 stores nationwide, Family Dollar opened 500 new stores this year, more than one per day.

In Maine, a state Forbes Magazine recently listed as the worst to do business in for the third consecutive year, there are 48 Family Dollar stores, and the number is growing.

Ellis,  a real estate developer from Hampden, said he is not a franchise owner of Family Dollar. When he purchased the Meadow Mall, he said he didn't have the commitment. However, thought Boothbay Habor would be a good market for Family Dollar because they typically do well in coastal communities.

While Walmart might encounter difficulties working its way into a small communities, Family Dollar often sneaks in under the radar, redeveloping old store fronts and strip malls.

Backed by $4.75 billion in annual sales, Family Dollar has a lot of buying power, but they are a business that thrives on being cheap.

“It offers the local consumer another choice,” Ellis said. “To be able to get a name-brand product at a good price, that's only good for the consumer.”

There is a common perception that Family Dollar is a literal dollar store, where all the product costs a dollar, Ellis said. In reality, roughly 90 percent of their product cost less than $10.

Family Dollar's target customer is a female head of household in her mid-40s making $40,000 or less per year. The average sized store employs 8-10 people, and about 40 percent of the retailer's products are manufactured overseas, according to their website.

In Belfast, there are two Family Dollar stores less than a quarter mile away from one another.

Josh Boehner, the assistant manager of the older store on Lincolnville Avenue, said he thinks both Family Dollar stores have done well in Belfast. “For the most part we do good business, and provide many things to customers of all ages.”

Boehner said the store gets many daily customers who like the discount prices, and that he rarely deals with returned items.

Boehner said he didn't think Family Dollar posed any direct competition with supermarkets like Hannaford.  While groceries and cleaning supplies are among the store's most popular products, he said the store also features seasonal products and apparel.

Ellis said he has not encountered any negative backlash for opening a Family Dollar. “Once in a while, you come into a new community and sometimes the local grocery store might be a little concerned, but once they see it's not a full out grocery store, it's just good for the people.”

Katie Rittershaus of Boothbay said she didn't know if Family Dollar would pose a threat to other local businesses' sales. “If you look at society's architecture, it's a reflection of our times.

“Before my time, it was churches. In the 1980s it was storage units. Nowadays, in our economy, when you look around what do you see? Banks and dollar stores,” she said. “I don't like the shift.” Rittershaus said she preferred the small town character of Boothbay Harbor, and she wasn't sure if she would ever shop at Family Dollar, even if it meant saving money.

When asked what concerns Family Dollar stores encounter when opening in small communities,  public relations manager Bryn Winburn said Family Dollar is a good community partner that understands the concerns of other local businesses. “We have a history of coexisting with the existing business in the area, and have in some cases increased business,” she said.

Winburn said Family Dollar plans to open several new outlets in Maine in the upcoming year. “Maine is a great market for us and we look forward to serving more customers in communities across the state.”

Family Dollar's closest competitor, Dollar General currently holds no market stake in Maine.

“I think that diversifying the type of retail shops that we have down here on the peninsula is only a good thing, and I think that will certainly be helpful,” Boothbay Harbor Town Manager Tom Woodin said.

Construction of the Family Dollar at the Meadow Mall is scheduled to be finished toward the end of February 2013, according to Ellis.