Straight to the point. If you sell lingerie you might as well sell lingerie. BlushBerlin.com Via Illegal Advertising.

Conspicuous consumption has drifted away as consumers shift their incomes to necessities in these dreary economic times. Overall, U.S. retailers are reporting that January 2009 sales are down 9.5% when compared with the same period the year before.

All the same, it seems that we haven’t completely given up on shopping altogether. Forbes.com is reporting that there are 10 key stores that Americans can’t live without.

Notably, the list includes Urban Outfitters. For the most part, 20-something hipsters will find a way to shop no matter what and Urban has a unique edge by not mimicking every other mall chain store. Each location boasts a product mix that is often tailored towards regional trends. Sales have increased 22.8% over the last year.

On the luxury front, Hermes (where handbags can retail for upwards of $5,000) isn’t for everyone’s budget. Though to Hermes credit, it is known for quality, timeless designs. Many who can afford the price points would rather invest in one quality piece that will last for years instead of a handful of lower-priced, trendier items from brands like Coach (which is doing terribly).

On the electronics front, Amazon.com has held up well. The massive selection, free shipping and low prices have all contributed to its success. Amazon has prospered partly because they were smart in the beginning and built a sense of community with customer reviews and pushed the Site Recommendation Tool (which recommends items based on customer’s past purchases).

Other flourishing retailers include American Apparel (now the largest apparel manufacturer in the U.S.), Walmart and J. Crew (thanks to the free publicity via the Obamas).

The secret to these retailer’s continuing success relies heavily on differentiation, whether it be through service, product offerings, price points or ease of use. Additionally, many (namely Urban, American Apparel and Hermes) continue to offer items that consumers can’t get at every other chain store. Getting consumers to part with their hard earned money right now means offering a unique experience that they can’t get anywhere else.

For New York Fashion Week, at least half of the 200 labels that are showing have been around less than 10 years, with a quarter being less than five years old.

Though, the seemingly endless wave of fresh and brilliant new fashion talent may be slowing down. The economic downturn has many stores cutting fall orders by an average of 20% and smaller designers without financial backing are bracing for a turbulent year.

The New York Times reports that the fallout could be even more severe after Fashion Week has wrapped. Once the fall orders have been placed, it will be clear who survives (and who does not). The more stores that close, the more labels will fold.

In these trying times, designers are feeling the burden of small stores and boutiques who are taking twice or even three times as long to pay for their orders. Even worse, some stores that have gone out of business are leaving behind clothes that were ordered and produced, but never paid for.

To cut corners this year, designers are upping cost-cutting measures that include bypassing runway shows for more intimate showroom gatherings, using fabrics stockpiled from previous seasons and sharing pattern makers. The cuts and closures are mounting with no end in sight….

Kim Gordon via The NY Times

The original queen of indie cool and and member of both Sonic Youth and Free Kitten, Kim Gordon is back on the fashion scene with a new line called Mirror / Dash. The clothing will debut exclusively at Urban Outfitters on February 16th.

Of the line, Gordon says that “The challenge for us is doing something that’s not strictly Urban (Outfitters) in that we want it to appeal to someone a little older than a teenager or college student, but still have enough youth appeal to belong in the store.” Her focus is on creating solid basics that are timeless and flattering with an image of 60s era Francoise Hardy in mind.

No doubt that she’ll succeed since she’s paired up with friend Melinda Wansbrough and fashion veteran Jeffrey Monteiro, who has worked with Jane Mayle, Derek Lam and Sari Gueron.

Photo courtesy of The NY Times

According to the NY Times, even luxury goods are not exempt from the faltering economy. High-end Fifth Avenue department stores including Bergdorf Goodman are luring in shoppers with enticingly deep discounts. Customers are now digging though designer handbags on tables with prices slashed upwards of 40%. The New Yorker’s Patricia Marx has even remarked that “Sixty percent off is the new black.”

Surprisingly, established luxury retailer Saks dug even deeper than its competitors, dropping the prices of much of its fall fashion up to 70 percent. Customers were so shocked that they assumed that many of the price tags were misprints.

A just released MasterCard Advisors report lists luxury goods sales as being of nearly 25% off this year when compared with last. The era revolving around the endless drive towards high-end consumption appears to be drying up fast.

The NY Times raises the question that everyone is pondering: With such deep discounts on luxury goods, consumers are left wondering what the astronomical mark-ups were in the past. And, now that they’ve witnessed these bargain basement prices, will they be willing to pay full price ever again?

In the current economic state, women who barely thought twice about charging a $1,200 designer purse are now skipping these luxuries and settling for their lower-priced counterparts. According to the NY Times, the movement of purchasing thriftier fashions has been coined recession chic. Women like price-conscious shopper Mary Hall have added a spin on the term and proudly declare themselves recessionistas. Hall has even founded the Recessionista blog, cataloging all the smart buys she comes across.

While the term ‘recession’ is considered unfavorable, embracing recessionista instead is seen as a way to embrace the economic downturn (and to keep on shopping in the process.) Though women are throwing around recessionista in casual banter, lexiconographer Grant Barret is warning us that “it’s kind of permitting consumers to have justification for their spending habits.” In a way, he’s reminding us that there’s something very off-putting about shopping for piles of clothing we don’t need in a shaky economy. Writer Lauren Sandler asks “Do women in today’s economy want to confront pages of $1,000 shoes when they are struggling to pay the rent?” Yet, without shopping, many designers and retailers will falter.

In the meantime, The NY Times reminds us that as catchy as recessionista seems, if the economy worsens, it may be replaced with…depressionista.