81% of the consumers surveyed said they are using grocery store coupons, and 72% said they are using more coupons than they did six months ago, according to survey results released last week by customer acquisition company, Proactiv. This is hardly a statistical shocker. When the economy gets tough, consumers get couponing.

The survey results do emphasize how bold it was for southern California grocery chain Ralph’s to dramatically curtail its coupon doubling program this summer. Ralph’s announced in June that it would no longer double the face value of coupons worth over 50 cents. If you believe everything you read on grass roots websites and blogs, response to this policy change was more intense than the 5.4 earthquake that rumbled through southern California a few weeks later.

Despite letter-writing campaigns and general online harassment, Ralph’s has remained steadfast with their new policy. So, shoppers took their treasured paper discounts and their righteous indignation to rival chain Von’s in seemingly significant numbers. The glow of revenge didn’t last long, though. Very few weeks later Von’s betrayed their coupon doublers too when they announced they would scale back their own coupon program to match Ralph’s.

What’s a coupon addict to do?

Lose sleep at night apparently, if you believe what you read on grassroots websites and blogs. I’ve never been a “professional” couponer and the main reason is because I don’t buy 95% of the stuff that manufacturers issue coupons for. Since I don’t fill my shopping cart with General Mills cereals, Frito Lay snacks, and Proctor and Gamble cleaning product, I am admittedly unsympathetic to the grave distress that the southern California retail grocery pricing trend is apparently causing.

Tonight my neighborhood Ralph’s was plastered with bright yellow price tags pasted underneath the regular price tags. At least 80% of the products on the shelves had the yellow tags, which I discovered was the new “lower everyday price.” I was unimpressed by the pricing gimmick until I noticed the $1.00 difference between the white and yellow prices for my frozen soup vegetables. That got my attention, and I started noticing that the prices for the items on my grocery list were now 25-30% lower, and some prices were half of what they used to be.

Thinking I might have fallen prey to the markup-to-markdown scheme, I went online and calculated what my grocery bill would have been at nearby competitors. Surprisingly, my Ralph’s tab was 30-50% lower than it would have been at Albertson’s and exactly the same as it would have been at fellow coupon turncoat, Von’s. My conclusion is that I have been subsidizing other shoppers’ couponing addiction for a long time with the prices I’ve been paying for my unincentivized grocery store purchases.

For now I will be part of the silent minority who applaud the death of doubling, and hope that the trend catches on for the eventual good of the majority. Perhaps pricing gimmicks are on their way out and operational efficiencies that make price reductions possible are on the way in. A retail consumer can dream.

“Circumstances do not make the man, they reveal him.” – James Allen

Talbots announced yesterday that its second-quarter losses were $18.32 million, which is almost twice as much as it lost in the same quarter last year. CEO Trudy Sullivan cited “a difficult macro environment” as part of the reason why. The company plans to close 78 stores and reduce its cost structure by $100 million.

Ann Taylor’s same store sales were also down 14.3% in the second quarter of 2008. CEO Kay Krill said the sales results were good “despite the impacts of significant macroeconomic softness and a deteriorating consumer environment, both of which continue to weigh on the retail sector.” The company announced in January that it plans to close 117 stores.

Chico’s had $38.7 million in profits last year in its second quarter. This week it announced a $6.7 million profit for Q2 this year, which is a staggering 83% same-quarter drop. Scott A. Edmonds, chairman, president, and CEO said, "The retail environment continues to be challenging as customers remain increasingly cautious in their spending across the entire retail sector.”

“Adversity causes some men to break; others to break records.” – William Ward

Bucking all the retail industry trends, Urban Outfitters posted a 79% jump in second quarter profits, which included a 19% increase in sales, and a same store sales increase of 13%. After outperforming all its competitors and beating market estimates, CEO Glen Senk stated simply, "All of our brands and channels produced exceptional results during the period. The Company executed superbly throughout the quarter, and we believe we are appropriately positioned for the second half of the year."

Inventories grew by $25.6 million. Selling, general, and administrative costs fell. Merchandise markdowns decreased. Since the beginning of 2008 Urban Outfitters has opened 24 new stores and plans to open 21 more by the end of the year.

“Adversity reveals genius, prosperity conceals it.” – Horace

Could we possibly be talking about the same quarter? The same retail sector? The same economy? The same gas prices? The same consumers with the same wallets? Yes, yes, yes, yes, and yes. How could Urban Outfitters conjure such magical results from the same muck of circumstances that its competitors point to as the root of all their troubles?

When the economy itself is creating good results for retailers, every strategy is a good strategy because they all seemingly result in profits. Now that the economic supports have been kicked out from underneath the retail industry, it’s starting to become apparent which retailers can stand on their own good strategies without being propped up by external circumstances.

“Big is the enemy of cool.” – Richard Hayne, founder and chairman of Urban Outfitters

Don’t saturate the market. Instead of opening more stores, develop a new concept. It’s okay to fail. Never look in the rearview mirror. Give the stores a long leash. Be creative. No two stores should be the same. Know your customers and give them what they want. Look to efficiency improvements to boost profits.

These are the inside secrets that Urban Outfitters has revealed to the retail world over the last 38 years. But the simple philosophies and slow-moving strategies have been easy to ignore while more aggressive, high-flying retail operations were grabbing the headlines. Urban Outfitters' quiet success is screaming loudly now. And I think James Allen would agree that economic conditions do not make the character of a retail operation. They reveal it.