All Optimistic on the Retail Front

Meanwhile, Urban Outfitters(URBN Quote), another strong presence at the conference, took pains to convey that it remains committed to driving business through innovative product and experiential shopping, refusing to take part in the pricing war taking place at many apparel chains.

Instead, they said that management is training its consumers to buy items they love when they first see it, instead of waiting for a sale; since Urban Outfitters stocks sundry styles of clothing, but not many pieces of each, shoppers know they won't still be there in a few weeks.

Urban Outfitters is also open to a "small acquisition," CFO John Kyees said during the conference. In the past year, the company has rolled out two new concepts: Terrain, a garden lifestyle concept, and wholesaler Leifsdottir.

But innovation doesn't solely have to mean growth. In fact, as Cohen said, it may be time to stop focusing on volume growth as a way to judge a company and start looking at profit. "What would you rather have, a company that is losing money, but growing, or one that is making money?" he asked.

Job cuts and store closures should be viewed as a positive, Cohen says, and the responsible thing to do during the current economic climate.

In that vein, Phillips-Van Heusen(PHV Quote) has already closed its 100-stores Geoffrey Bean concept last year, and announced that it plans to close 150 of its legacy stores over the next three years. In 2008, PVH had 700 stores, and CEO Emanuel Chirico said he wants to take that number down to about 400.

"As a whole we are over-retailed, over-restauranted, over-hoteled and over-gamed," Cohen said. "Do we need a mall on every exit of the 405 freeway? Two coffee shops on a corner? It's more than what we need."