Los Angeles and San Francisco have always been rivals in everything from baseball teams to culinary superiority to cultural attractions. Having lived in both cities, I can verify that those rivalries are indeed real.

Now it looks like L.A.’s retail boutiques are suffering an economic blow, while San Francisco’s fashion scene is on a roll. The reason? I think the creative director for Barneys New York, quoted in the Bay Guardian blog, has it nailed: “People here (San Francisco) are into design. It’s about the craft of fashion, not the hype of fashion.” In L.A., he points out in the article, style is all about exhibitionism or what other people think of what you’re wearing. “Here,” he says, it’s what you think of what you’re wearing.”

After reading the Los Angeles Times article and the Bay Guardian blog, I conclude that the L.A. shops didn’t pay enough attention to the bottom line. They were the fashion flavor of the month, with customers’ loyalty lasting only until the next trendy boutique popped up. When the realities of the economic slump finally hit their customers, it was too late. Virtually all the shops were beaten down by the Macy’s, Nordstroms and even the Mervyns of the retail world.

In San Francisco, the trendsetters stuck together for the betterment of their community. As the Guardian blogger said, “…the point is that here, creativity, innovation, and plain old weirdness is still king.

It would behoove you to know what your competition is up to, and to possibly form an alliance with them–a retail owners’ association, for example, that creates sidewalk sales, block parties, coupon clubs, etc. Successful retailers know that they have to stay ahead of the curve. Make sure you don’t fall behind it.