LaMae Boutique extended its hours and got more involved in the community, a secret for success for owner Meghann Hansen’s Rapid City store and many other retailers in the state.

“We’re having a little Christmas party for our customers during the Parade of Lights,” Hansen said.

The South Dakota Retailers Association said its annual survey of members indicates that Hansen and many other business owners took steps during the economic downturn that should help their businesses in the long run.

Forty-four percent of businesses that responded to the survey said they anticipated a good to excellent final three months of the year. Another 40 percent predicted a fair last quarter, while only 14 percent expected a poor performance.

About one-fifth of the businesses that sell holiday gifts expect this year's sales to exceed last year's, with more than one-third expecting sales to be about the same. More than 40 percent expect holiday spending to be down this year.

LaMae Boutique pushed up its advertising, helped in several runway shows and took part in a tattoo event to create name recognition and branding.

“Everyone in retail hopes the holidays will bring sales up,” Hansen said.

Peter and Aida Compton of Bully Blends did more than rely upon the Christmas spirit to face down the recession. The Rapid City couple extended their beverage selection beyond their tea and coffee house menu. They now serve a selection of beer and wine and expanded their hours to include a dinner menu, plus they open on Sundays. They brought in a dedicated baker to make exotic breads and pastry, including gluten-free items.

“It wasn’t our intentions, but we are moving toward becoming more of a restaurant than a tea and coffee shop than we had in the past,” Peter Compton said.

With the holidays upon us, Compton projects his Rapid City business will earn about 9 percent more this year than in 2008.

“We’re really tickled about that,” he said.

Dan Tribby, general manager of Prairie Edge, said participation in downtown’s “A Few of My Favorite Things” promotion and Parade of Lights, which will bring as many as 20,000 people into the downtown area, has helped Prairie Edge finish in the black for the year’s final quarter.

“It’s a marvelous opportunity to showcase what we have in the store,” Tribby said.

The weak economy cut into tourism, which led Prairie Edge staff into participating in Thursday’s Summer Nights and other fall promotions, as well as putting a lot of emphasis into its Internet and Web presence. On Super Saturday, Dec. 5, Prairie Edge -- like many of its retail neighbors -- will pay the taxes for the merchandise sold at its store. “It’s a big day for customers.”

Another shot in the arm for Rapid City retailers before the end of the final quarter is the Lakota Nation Invitational, Tribby said.

“We have come to count on that as a real big push right before Christmas. All those things work together to create a great group effort for retail,” he said.

Shawn Lyons, executive director of the Retailers Association, said the survey results are similar to last year's numbers, but some responses indicate improvements.

"We're pleased that there almost seems there might be a little turning of the corner, slow as that may seem," Lyons said.

The survey, returned by 688 businesses, also indicated 41 percent of the businesses believe their customers are generally optimistic or very upbeat. Although 54 percent said their customers are feeling cautious, only 4 percent said their customers are very worried.

"That's just intriguing that businesses are saying their customers may not have quite that same level of trepidation they had a year ago," Lyons said.

He said many business owners took a close look at their operations to become more efficient during the recession.

Clothing and electronics stores seem to be doing well, but some home furnishing stores have not fared so well, Lyons said. Economic activity varies from community to community, he said.

Lyons said agriculture was a key factor in South Dakota's economy. Early fall rains kept farmers out of the grain fields, and retailers are hoping for good weather so the rest of the crops can be harvested, he said.

Lyons said a good year for retailers will help cities and the state, which rely on sales taxes.

"I guess we're pleased to hear the response so far from a good share of our members that are saying they are having a decent year and are looking forward to finishing out the final quarter the same way," Lyons said.

Tribby said he deals with vendors out east who are down 40 percent to 60 percent, doing everything they can just to keep their doors open. In that regard, Rapid City has been blessed, he said.

“In Rapid City, we have a tremendous amount to be happy about,” Tribby said.