Handbags to the rescue:

Retailers looking to boost sales at a time when women are reluctant to spend money on a whole new wardrobe are falling back on an old fashion maxim: Accessorize.

"Little things" like belts, scarves, footwear and handbags are less expensive, and a fun way to update last-season's wardrobe...

Companies known for accessories, such as Coach Inc. , Kenneth Cole Productions Inc. and Claire's Stores Inc. have shown a big leap in profits, helped by robust sales. In contrast, many other retailers have had to rely almost solely on cost controls.

Shoppers spent up to 24 percent more on accessories compared with a year ago, according to a survey of 1,000 people conducted in January by America's Research Group, said Britt Beemer, the group's chairman.

Stocking accessories make all-around good business sense. Accessories have much higher profit margins than apparel and footwear and are the perfect impulse buy (which is why they should always near the point of sale). And, as this article points out, they are a good hedge during economic downturns.

Later in the article there is a profile of Coach, who has been very successful selling upscale accessories. One of the key factors in its success is that Coach rarely, if ever, runs sales:

Not only has Coach's near-luxury label become a must-have for fashionable women in the United States and Japan over the last few years, the company has rarely had to mark down prices, unlike the bulk of retailers hurt by a rocky U.S. economy. In turn, it has consistently increased and topped its profit targets in recent quarters.

As I've mentioned before, sales can be a powerful narcotic you may find yourself inadvertently addicted to. Though you didn't start off as a low-cost retailer, you may wake up one day and realize that your discounts are the only thing bringigng customers into your store. If you are going to sell luxury or high-end items, be very wary of sales.