Nah, their products are selling WAAAAY better than other retail. MyPlace, for example, was the #1 best selling product at Bed Bath & Beyond during black Friday weekend. Their products are cheap as hell and many of them actually save the consumer money. A ton of new products being launched that, too, save the consumer a ton of money so they may actually do better in a recessionary environment. For example, for a one-time investment of 20 bucks they have the Genius Air coming out that extends the life (and $) of the food in your fridge. They have another product launching that saves big bucks on laundry detergent. People look to cut $ spending on laundry detergent when they're broke....not when they're rich lol.
Besides....the sales they make are to the retailer stocking the shelves. New product launches automatically have huge sales at least at first. And they have a ton of new products coming out. Early 2009 is going to blow Q4 away IMO.
In short, they are responding to the recession by introducing a ton of recession-proof products that actually SAVE the consumer money and pay for themselves. No wonder retail sales were up 60% last quarter while other retailers were getting killed.
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