This is a hot topic for me. I think the media has exacerbated the current economic conditions — too often, people are defeatists and give up too fast. Good businesses can do well in bad environments. We not only survived 2008, but we grew. Our business is run on old-fashioned values. We work hard every day to succeed, and we deliver value and care to our customers. There is no question that the current business environment is challenging. In our opinion the biggest problem is the fear and panic spread by 24/7 news coverage. We recognize this anxiety and have worked hard to ensure that our team members feel good, remain positive and deliver outstanding service to our customers. This is when you can grow and build stronger loyalty. We have made sure that our management team is front and center in our stores, with customer and salesperson. We are focused on process, operation, quality and style. We have meticulously managed all aspects and we take it one day at a time.The world works in cycles. We have all benefited from a great run. The name of the game now is to stay in the game so we can participate in and benefit from the next run. — Ronald E. Werner, HW Home, Denver

November and December were slow, but we were quite surprised to end the year with our best December ever — a 25% increase over last year with 53% margin. We found that customer service, our wrapping, and the fact that many of our products are organic and give back to the world, all contributed to our holiday success. For next year we are buying less inventory, and are placing wonderful signage that describes our approach to business and our product. For example, we carry beaded animals made in South Africa by women with HIV and the money goes back to making their lives better. Our bags are hand-made in India using recycled cotton. We have an art wall to promote original work, and give 10% of the retail sales from all three stores to send two students to a summer arts camp. We've always done these things but now we are making a big statement about it. We believe in heavy advertising, publicity and events and will continue them going forward. We're excited about the year ahead and feel that there will be huge opportunities for retailers like us that are doing something wonderful for the environment, the community and the world — creating a fun shopping experience. — Kathy Walsh, Homeward Bound, New Milford, Ct.

Branca, Chicago

The first half of 2008 was very good for me and numbers were up heading into the second half. When the gasoline prices soared in June, however, I watched my business decline a whopping 70% for the month. I immediately adjusted my fall inventory selections so that I would have a wide range of inexpensive gifts and accessories to sell through the Christmas season. Although I am a furniture and home accessories shop, I sold almost nothing but gifts and accessories for second half of the year. I revised my sales forecast at 40% off previous year numbers. The holiday season went pretty much as expected. When all was said and done, I ended up +1% for the year. Frankly, I think it was a miracle. I have no idea what is going to happen in 2009. So far, business is almost nonexistent but we are planning several non-sale events for the spring and sending personal invitations to these events which are geared toward getting out and having a good time in a beautiful atmosphere. At the very least I think the next six months are going to be tough but hopefully things will ease in the second half. — Barbara L. Collins, The Whistling Elk, Chester, N.J.

We are running a very tight ship and, in spite of a bad retail sales period, our profit picture is more positive. The difference is due to a dramatic increase in fees for consultation on design projects. We also spent a large amount on advertising, promoting a $3 million dollar home we furnished and showcased as a charitable fundraising project in September. We got lucky and sold 50% of the home's furnishings to the home buyer, and the homeowner became our client as well. People are more cautious with their purchasing, which gives us a chance to shine as designers, providing professional advice. We are considering reinstating our design class for the public to bring those potential design jobs into our store. We will be using more direct mail to reach a specific class of people, networking with high profile women's groups, promoting professionally certified interior designers, and taking advantage of developing relationships with vendors we'd like to show on the showroom floor. Since these vendors are more open to new representation this is an opportunity for us to build the "perfect retail showroom." — Marilyn Hansen, The Designers Furniture Gallery, Omaha, Neb.

Throughout this past holiday season, customers kept asking us, "How are you doing?" with a scrunched-up nose and a sympathetic head tilt. They'd all been listening to the freak-out TV news reports of brutal losses for desperate retailers and they expected us to be suffering. With joy and confidence, we told them our truth, that we were in fact having our best fourth quarter in three years. We experienced fourth quarter sales revenue growth of 28% over last year's fourth quarter. And for the year, our sales revenues increased over 49% from 2007 to 2008. As far as what we'll do differently next year, we're no dummies. We know that we have to continue to enchant our regulars along with luring and keeping new customers. There is no resting on any laurels. We will strive to make our offerings ever more buyable and relatable while continually honing and redefining our concept, our niche and our target customer. We hope this resistance to complacency will keep us thriving. — Abby Kerr, The Blissful, Canton, Ohio