Maintaining Your Brand During A Recession

The way some high-end retailers are maintaining their brand strength is buying lowering prices, per USA Today.

It's an interesting approach because the retailer doesn't have to risk their reputation, but can still keep profit margins. The consumer doesn't have to trade "down" and can shop at the same stores. A win-win for all.

The companies that have been discounting, mainly Saks, have sullied their reputations.

Yet, customers still love a bargain... otherwise T.J. Maxx and Marshalls would not be tallying double digit increases.

My question is how come the prices can be lowered enough to be considered affordable and the company still makes a strong profit? Where's the "sweet spot" in this equation? Those who can figure this out will continue to do well once the economy rebounds.