Best In Class: Price Is Right at Aeropostale

The teen market is fickle, just like its core customers. Throw in parents cutting back on discretionary apparel purchases -- not to mention cutting back on allowances -- and the sector today seems all but impenetrable.

But business maxims don't change in trying times -- they are, in fact, made all the more true. The key to success for teen retailers in the economic crisis is therefore the same as it has been throughout time: Give shoppers what they want at prices they can afford. And this deceptively simple formula that has helped Aeropostale(ARO Quote) to not only survive, but thrive, during the recession.

Aeropostale has prided itself on its ability to offer "trend-right" merchandise at value prices, perfecting its promotional business model long before consumers began seeking out lower prices. Call it a miniature Wal-Mart(WMT Quote). Indeed, much as that big-box discounter has done, Aeropostale has transcened its core middle-income demographic through an appeal to frugality. ...