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12-9-2009 100
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Posted on January 21, 2009 4:57 AM

High-end retailers prosper in economy

Many of State College's high-end retailers have shown strong sales in the midst of the national recession, weathering a holiday season that was disappointing for most of the country.

"We had a great December for what we were up against," said Mickey Muchler, sales associate at Kranich's Jewelers, 216 E. College Ave.

Stores selling high-dollar goods -- ranging from jewelry to suits and ties -- felt the effects of the countrywide recession before the holiday season, owners said. However, it all turned around in December, with sales surging far ahead of the national average.

Storeowners are confident their customer base will continue to spend, even though some might call a new gold watch or a designer golf tee frivolous in this economic situation.

"Big stores like Macy's are struggling because they expanded too quickly," said Brian Cohen, owner of Harper's Shop for Men, 114 W. College Ave. "But we had a pretty decent holiday season."

After all, Cohen said, his store serves a select customer base. People preparing for job interviews or other social events want to look good, he said, and they're unlikely to sacrifice quality for the occasion.

Of course, hyping the holidays doesn't hurt, owners said. After Christmas, some stores search for new gimmicks or sales to entice customers, said Bob Steinbach, owner of Connections, 130 S. Allen St.

"People are gearing up for Valentine's Day," Lindsey Ondo, sales associate at Kranich's Jewelers, said. "Our student market buys a lot of engagement rings. There are always occasions for jewelry."

Even luxury clothing stores are faring well in the notoriously underachieving post-holiday season, the store owners said.

Across the board, stores have reported January sales in line with previous years, largely unaffected by the national economy.

All current price cuts at Connections -- some items are marked down 75 percent -- are normal for this time of year, Steinbach said.

"I think people are buying more of the sale goods," Steinbach said. "I wanted to make sure my prices were sharp for students when they came back."

Cohen also said sales carry most of his post-holiday business until new merchandise is released in the spring, and this year is no different.

"In January, our goal is to move it and get rid of it," Cohen said. "Believe it or not, we are getting shorts in soon."

Most State College businesses expect consistent sales in the coming months.

Despite the state of the national economy, storeowners do believe there is a light at the end of this tunnel.

"If you can come out of this storm, the people who come out of it will be much better for it," Cohen said.



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