PIERRE — Thune True Value Hardware has expanded and remodeled to draw in new customers and survive the recession, a strategy that has proven successful for the Mitchell store and other retailers in the state.

“Things are going very well here, extremely well. We’ve made a tremendous investment in light of what’s coming, trying to get a bigger piece of the pie, and that seems to be working,” Thune True Value Hardware owner Spencer Gross said Monday.

The South Dakota Retailers Association said its annual survey of members indicates that Gross and many other business owners took steps during the economic downturn that should help their businesses in the long run.

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Forty-four percent of businesses that responded to the survey said they anticipated a good to excellent final three months of the year. Another 40 percent predicted a fair last quarter, while only 14 percent expected a poor performance.

About one-fifth of the businesses that sell holiday gifts expect this year’s sales to exceed last year’s, with more than a

third expecting sales to be about the same. More than 40 percent expect holiday spending to be down this year.

Shawn Lyons, executive director of the Retailers Association, said the survey results are similar to last year’s numbers, but some responses indicate improvements.

“We’re pleased that there almost seems there might be a little turning of the corner, slow as that may seem,” Lyons said.

The survey, returned by 688 businesses, also indicated that 41 percent of the businesses believe their customers are generally optimistic or very upbeat. While 54 percent said their customers are feeling cautious, only 4 percent said their customers are very worried.

“That’s just intriguing that businesses are saying their customers may not have quite that same level of trepidation they had a year ago,” Lyons said.

Lyons said business owners took a close look at their operations to become more efficient during the recession.

One Rapid City business responded that it decided not to take part in the recession, so it increased its advertising and marketing efforts, Lyons said.

Clothing and electronics stores seem to be doing well, while some home furnishing stores have not fared so well, Lyons said. Economic activity varies from community to community, he said.

Lyons said agriculture was a key factor in South Dakota’s economy. Early fall rains kept farmers out of the grain fields, and retailers are hoping for good weather so the rest of the crops can be harvested, he said.

“If the farmer does well, we do well,” said Gross, the store owner.

Lyons said a good year for retailers will help cities and the state, which rely on sales taxes.

“I guess we’re pleased to hear the response so far from a good share of our members that are saying they are having a decent year and are looking forward to finishing out the final quarter the same way,” Lyons said