During the continual recession business analysts are grasping at straws to find companies that have turned in gains for the first quarter with steady climbs projected for the rest of the year.

Retailers like The Buckle who reported $77.3 million for the period ending April 4, 2009 where total sales increased to 24.1% according to Retail Infosystems News.  Specializing in young hip basics like t-shirts, blue jeans and bathing suits the wide variety of brands they carry all display similar types of merchandise.

Hot Topic revealing numbers such as a rise in sales to $44.8 million, up 8.4% from last year. Specializing in teen apparel and accessories, it appears that as the kids grow, they need clothes, and even though their conservative parents might be cutting costs elsewhere, when it comes to the countries youth, the money seems to continue to flow.

True Religion Apparel also made a profit in the first quarter, while brands like the major fashion retailer Filene’s Basement declared Chapter 11 on May 4th, so what does that say about the retail economy?

Many say that no one is safe, but as well-rounded fashion experts, we can read between the lines.  The market is hyper competitive so picking a specific demographic and a key product is one way that will ensure survival.

Instead of further reducing prices, try incentives to get consumers to shop.  People are still looking for intelligent inventory (a staple of basics and an influx of something new to catch their eye).  Quality has not been something people are willing to sacrifice, going to their “tried-and-true” brands (denim is an obvious example of this theory) so reward those who shop for their favorites.

Retailers and designers are spending more time understanding and listening to their customers needs.

“Truly understanding what motivates our customers, what they expect every time they interact with us, and how they relate to our brands - whether they shop at lizclaiborne.com or at luckybrand.com - has never been more important than in today's hyper-competitive economy,"  James Mount, Web Analytics Manager, Liz Claiborne told Retail Infosystems News.

Organizing your business model to better forecast what customers want in the future, will also be helpful and the easier it is to manage the supply-chain (shipping distributing) details, the less money you will loose on buybacks and delayed delivery costs.

The web-retailers are still succeeding or at least making their bottom line as it allows them access to a greater market share, but eventually those people holed up in their apartments will want to go out and smell the fresh air (look at the Hot Topic sales and take note that teen-agers spend their free time and money bumming around the mall).  If they are there they will usually shop, so introduce something new or invite your special customers to an event in your boutique, showroom or studio.

A little champagne and some personal touch will go a long way to boost the mood of those that want to put their money in the right place.

-Lynn Furge