DAPHNE, Ala.—The first rule of business used to be location, location, location.

Times have changed; American shoppers aren’t spending as much—a trend that’s grown into fact.

Reduced hours and rising unemployment rates are the main catalysts; reports run daily about thousands more Americans being laid off in another industry.

Daphne retail stores  Goody’s and Child of Mine have been forced to close their doors; Bay Coffee Company on Main Street has considered selling; and the Circuit City in Spanish Fort never even opened.

Help is on the way for local business owners trying to make it through a cold winter.

The Eastern Shore Chamber of Commerce, for instance, will create an online coupon distribution system—an incentive program to drive customers.

“We’re trying to give them tools,” chamber President Darrelyn Bender said. “The chamber is putting together a marketing package Web site to distribute downloadable discount coupons.”

Bender expects the program—set for www.esdiscounts.org—to be up by Friday and for new packages to consistently be added to meet the area’s tourism needs.

“We’re going to keep adding to it because it will run until the summer,” she said.

Bender said she has spoken with local retailers to find out how they have been impacted by an ailing economy.

“A lot of them are keeping their inventory low and some are cutting back hours,” she said.

Not all local retailers have waved a white flag or even seen red; some have made adjustments and report growth.

Van Laird, manager of J&J Furniture, said his Daphne store has exceeded year-to-date sales from 2008; he declined to give figures.

“Customers are certainly still shopping,” Laird said. “They’re just spending their dollar more wisely.”

Laird cites the store’s local roots for his furniture store’s success.

“We are a family business,” he said. “I think we’re simply more adaptable than a business with out-of-town owners.”

Laird said he teaches his commission-based sales staff that customer service comes first, then a pay check.

“I believe very strongly in sales people,” he said. “People still want someone to talk to, someone helping them rather than selling to them.”

Still, Laird has been forced to cut costs, recently letting go of a long-time assistant manager and shortening the store’s hours.

“We are cutting costs, cutting non-essential programs,” he said.

One means is by importing nearly 80 percent of his store’s goods from China.

Julia Parks—manager of The Little Gym, a children’s gym in the Jubilee Square Shopping Center—has also seen a change in consumer spending.

“The main thing we’re seeing is more people paying with an installment plan,” she said. The children’s gym offers a six-month membership plan that allows clients to pay in full or in monthly installments.

Like other retailers, Parks has cut costs and become more aware of rising overhead totals.

We’re trying to cut costs and reduce hours, she said. “We’ve become more cognizant about what we’re spending.”

Parks attributes her client-parents’ commitments to providing a lifestyle long on exercise for their kids as the reason her store is still successful.

“I think with the nature of what we have to offer, we have a very unique program,” she said. “Parents would not cut back on their kids’ health as quickly as they would on clothes.”

Sandra Hasting—manager and owner of Changes Hair Studio—however has noticed a drop in her store’s retail.

“We’ve had a few people say that they can’t afford in-store color,” she said. “My big dollar is color and treatment.”

Instead, more customers ask Hasting’s stylists to recommend a brand to use at home, a process that can save the customer up to 50 percent.

But Changes still experiences growth due to strong customer service and loyalty, according to Hasting.

She also finds security in the adage, ‘everyone needs a hair-cut.’

“Women are going to get their hair cut,” she said. “Men will get their hair cut. You might skimp on groceries but you’re gonna get you’re hair done.”

Like Parks, Hasting approached her staff about being more mindful of spending.

She contacted her phone company and restructured the business’ monthly bill, culling unnecessary items; also, the salon uses the thermostat in moderation.

Conservation extends to the hair products.

“I told them just to be aware of how much color is being dispensed,” Hasting said.

“By making every drop of color last—every drop of gel.”