The Hanford Mall in some ways is a mirror of the nation's ailing retail sector, which has seen its worst holiday season in decades. The mall finished 2008 with mixed results, with some stores selling more than in 2007, but most others doing worse. Store managers in struggling stores blamed the recession for weaker sales.

"People are more conservative with their spending," said Rene Flores, an assistant manager at the mall's Footaction USA, which has seen December sales take a 10 percent nosedive from the same month in 2007.

Heads of thriving establishments tell a different story. They say creative products and lack of competition have driven their businesses through tough times.

But the overall picture of the mall is not too different from that of the national retail sector, which has seen holiday sales fall by up to 4 percent compared with a year ago, according to SpendingPulse, a division of MasterCard Advisors.

"We struggled this year," said Lisa McIlwaine, general manager for the Hanford Mall. "We had to work harder to make each sale... People are scared to spend."

But the Hanford Mall had one good surprise.

"We did better than the national average in 2008," McIlwaine said. "Customers are loving the deep discounts this holiday season."

In fact, the holiday season, when 30 to 40 percent of the mall's annual sales take place, was surprisingly strong. In the days after Christmas, throngs of people flooded the mall, making it "visually" busier than Black Friday, the day after Thanksgiving, she said.

Indeed, the health of Kings County's only indoor mall is doing better than many other shopping areas nationally. Some business analysts project 2,000 to 3,000 malls nationwide will shutter as a result of the retail sector's contraction amid the most dramatic pullback in consumer spending in decades, according to a recent Associated Press story.

This fate appears to be highly unlikely for Hanford Mall, though. The 2009 year looks promising for the mall, with a slew of new retailers set to come in, McIlwaine said. She declined to name the retailers during the interview.

Unsettling developments, however, also accompany the good news.

Retail giant Mervyns shuttered its doors for good Dec. 29, marking the end of the decades-old company, which completed its liquidation sales last month. A replacement store hasn't yet been named.

"It's too early to speculate what the possible replacement of Mervyns (will be)," McIlwaine said. "We view this as an opportunity to enhance retail offerings at our mall to better meet the demands of our customers."

The recession has slammed not only big retailers but also smaller stores.

Shiekh Shoes, for example, has seen its sales plummet by as much as 7 percent compared to the 2007 holiday season. Store manager, Paul Chung, attributes the recession behind shriveling sales.

"When companies cut on payroll people don't have money to buy shoes," Chung said.

The result is he has used special tactics to lure people into his store. For example, he's marked 15 to 20 percent off older model shoes, and offered a buy-one, get-one-free deal on women's boots.

But the tactics still haven't pried open the tight wallets of customers in most cases.

"People are coming in, but they're not buying anything," Chung said. "Most of them are window shopping."

But some small stores are doing surprisingly well.

Journeys, another shoe store, has seen sales jump 20 percent for the 2008 season compared with 2007. Management has seen an overhaul, bringing along not only more personalized customer service but also a better-organized presentation of shoes.

Before, shoes of varying styles were scattered here and there, making them difficult to find for customers.

"Shoes were more disorganized," said store manager Joe Longtin. "It was like a 'Where's Waldo'-type shopping."

Now, shoes are arranged by category, with athletic shoes placed in one area and dressier ones in another. As a result, a customer can easily find the type of shoe desired.

Revamped customer service has also encouraged people to buy more.

"We know our customers on a personal level," Longtin said. "There's more one-on-one interaction."

Because of the improvements, he expects to see sales zoom by 5 percent in 2009, an amazing feat considering that the nation is the midst of a deep, prolonged recession.

Most stores, though, don't have such bragging rights. According to interviews with nearly a dozen businesses at the Hanford Mall, the typical store either barely reached or were just shy of their sales goals, with performances slightly below 2007.

Pac Sun is an example. Its 2008 sales were down 6 percent from 2007. The store set its sales goal 5 percent lower than in 2007 because it expected less business because of the recession.

"We're not doing that bad," said Heather Gonzalez, an assistant manager at Pac Sun. "We're still in the green."

Part of the reason the store is holding its own: it has slashed prices by as much as 70 percent.

"Sales are to get people in the door," said Gonzalez, pointing out the large 70 percent-off orange sign posted in the front window of the store.

Another assistant store manager, Jessica Vera, attributed their success to offering rare products like skinny denim jeans and neon fleeces.

"You can't find these things anywhere else in Kings County," Vera said.

Gonzalez agrees.

"The economy is down but you still need clothes," she said. "They're necessities to life. You want to be in fashion and wear fashionable brands, and Pac Sun has those things. We don't have much competition."

Times are tough for most stores in the mall, located in a county with one of the lowest per-capita incomes in the state.

Assistant manager of Wet Seal, Angel Delatorre, says his women's clothing store has struggled to sell its merchandise. He says his store sold 2 percent less in December 2008 compared with the same month in 2007.

"If the economy wasn't so bad, we'd be hitting out numbers," he said.

The store's location in the San Joaquin Valley also hurts sales. The stylish clothes he sells cater to young women in their teens and 20s. Jobs for that age group in the Valley are mostly "minimum wage," Delatorre said.

"On that income, it's hard to afford anything we sell," he said. "A lot of young adults here live paycheck to paycheck."

"We'd be hurting a lot more if we were a high-priced store or a boutique," said Heidi Coffey, a sales associate at Wet Seal.

The reporter can be reached at 583-2423.

(Jan. 4, 2008)