Not all retailers got the memo, the one advising caution during the economic downturn.

Some, like Barry Goldware, founder and Ceo of Houston-based Sun & Ski Sports, sees the slowdown as an opportunity.

He just opened two stores in Dallas and recently remodeled two Houston-area locations, with one of them getting an expansion.

"There are incredible real estate deals," he says, and it's easy to staff new stores when other retailers are downsizing.

Across the nation this year, retail chains have closed stores, fallen into bankruptcy, laid off staff and curtailed expansion plans as consumers pulled back and bankers tightened credit.

But, here and there, retailers who are in good financial shape are expanding, looking for real estate opportunities or moving into areas like Houston that are weathering the economy better than others.

Consider Austin-based Whole earth Provision Co., which just opened a Houston store near the Galleria on Post Oak Boulevard this summer.

"We'd probably do it again, because that location is great, and we believe in the Houston market," said co-owner Joe Jones, whose chain of stores sell travel-and-nature-themed clothing, toys and gadgets. it also has locations in Austin, Dallas and San Antonio.

Sun & Ski and Whole earth are not alone in expanding in the Houston area. J.C. Penney, Marshalls, Ross and Michaels recently opened stores in league City near the booming Victory lakes subdivision. even Starbucks, which is closing stores in the area, is opening a shop there.

Still, taken from a wider perspective, expansions are rare, the experts say.

"You have to be an independent thinker and have a good set of chops given today's economy. it's a matter of having patience and guts," said retail consultant Dan Skoda, president of D&R Consulting.

Typically, one company executive might want to expand when the economy is difficult, but a more risk-averse partner or board member will hold him back, Skoda said.

"Warren Buffett says to buy when everyone else is selling," he noted, and that's often true. Of course, to expand when credit is so tight, you'd better be in a strong financial position, Skoda said.

Recent opening

Golf Galaxy, a large pro shop in an off-course setting, opened a store in Sugar Land less than two weeks ago, its fifth Houston-area location.

The Sugar Land store "rounds out our market strategy" for Houston, said Ron Hornbaker, Golf Galaxy's senior vice president of sales and operations.

When the company signed the lease about a year ago, "we did not see the current retail environment," Hornbaker acknowledged.

"It's hard to say" if the company would have gone forward if it had realized how the economy would weaken, but seeing how good business is in the new store so far, "yes, I would have still opened it."

Minneapolis-based Golf Galaxy is a subsidiary of publicly owned Dick's Sporting Goods.

The sporting goods business is not as hurt by the downturn as other retail sectors, Sun & Ski's Goldware said. His specialty sporting goods concept is focused on snow and water sports, cycling, skating, camping and running merchandise. Sun & Ski has 21 stores, five in Houston.

Not that he hasn't felt the effects of the weakening economy. While the last several years have generally been "excellent" for Sun & Ski, the current fiscal year is not. Same-store sales are down 5 percent, he said.

Goldware is still optimistic, though: "We feel that by the end of 2009, we will begin to come out of it."

Because his business has performed well over the years, he has cultivated solid lending relationships with his bank and increased his line of credit six months ago, he said.

Choice location

Still, a choice location can tempt a retailer even in a rough economy.

The new Galleria-area Whole Earth Provision store is less than five miles from its other Houston store in Montrose, but the two locations serve different purposes, said Jack Jones, co-owner and brother of Joe Jones.

The Post Oak Boulevard store is right off the West Loop, making it accessible for people from outlying areas. And being near the Galleria, it can draw international shoppers, he said.

Dallas-based Paciugo, an Italian gelato and coffee shop, just opened its fifth Houston location in Sugar Land.

Paciugo's Houston-area developer, Robert Le, said the economy has made him more cautious, but he's still looking for new spots.

"The key for us is finding a great location where people have disposable incomes," Le said.

 

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