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America is in a recession — though you might never guess it, strolling down Park Street on a given Saturday, window shopping and sipping a latte as you wait for your movie to start (a situation that this reporter blissfully found himself in the other day). Inexplicably, it seems like Alameda's economy has been growing, with a number of new business openings in just the past few years — and thriving.

"We're really fine," said Oanh Tran, the owner of Happy Feet, a children's shoe store that opened two years ago on Santa Clara Avenue. "Even though the economy's not great, people really value their children's feet, and are willing to pay good money for good shoes."

She does acknowledge that similar stores in other cities around the Bay that have closed down recently, "The down economy doesn't really seem to have been such an issue for us," Tran said. "We're just getting busier and busier by the month." "It's really like Alameda is growing into a happening place," said Jim Kwak, an Alameda resident expressing his pleasant surprise at the burgeoning life and style these new businesses are bringing to Alameda.

In supposedly the worst economic downturn in decades, how are they beating the odds?

Flexibility and innovation have certainly been crucial. "We've been having to switch gears a lot," said Pilar Burlingham, the energetic owner of Lilac, a dress shop that recently opened on the corner of Encinal Avenue and Chestnut Street. Initially meant to be exclusively a wedding dress boutique, Lilac expanded its inventory to meet the changing demand and tap a broader customer pool. "We've been trying to change it up by having a wider price range in our dress selection, stocking less expensive wedding gowns, dresses for prom and other special events," Burlingham said.

Other business owners are adopting similar strategies — in unique ways. At Shay's Café, a great place to grab a great an East Coast-style sub, or simply kick back on a Saturday afternoon with a mug and your favorite local newspaper, Wendy and Shawn Shay are carefully adjusting their business approach to match the needs of the community.

"We opened right when the economy tanked," Wendy said. "But we've managed to pull through. We've been trying to tailor it to what people are paying attention to, things that are working better than others." When all else fails, it seems the old mantra "the customer is always right" works best. "We go with what people want," said Shawn, summing up the café's strategy.

But more than that, Wendy points to the richness of the local community as a crucial element to their success. "People in Alameda really want to support us," she said. "People will tell us 'we really hope you succeed.'"

"Our community really stands behind the businesses here. And it's the supportive community we have that's really making a difference for us," Shawn said.