While some businesses across the country are struggling to stay afloat, others are booming, even expanding, in a slumping economy.

"We've been really fortunate. We are doing really well," one clerk said.

This store alone is, we're almost 20 percent up than we were last year," Buffalo Exchange store manager Monica DeClay said.

The reason? Re-sale retail. Translation: Second-hand, brand name clothes, shoes and accessories that are in excellent shape and trendy at a fraction of the cost. That's exactly what the resale chain, Buffalo Exchange specializes in.

Recently it had on its racks a pair of True Religion jeans that would retail for $300 new. Buffalo Exchange's cost: $100.

DeClay says business is actually expanding.

"Oh yeah, we have 33 stores now in 13 different states, and now we're opening a second New York store, our second Chicago store is open," she said.

The circumstances are the same for Johanna Melamed, who is opening her second re-sale store, The Closet, outside of Los Angeles.

"I think we are doing well because we are providing our customers with what they are looking for in this economy. They have less money. We have lower prices, and it's still the same great stuff," Melamed said.

The Closet boasts high-end designer stuff, like $1,600 Luella bag that's selling for $158 or $300 DVB jeans that have never been worn before that are now priced at $6.

It equals big savings, if you're not opposed to pre-owned labels.

"It's really nice quality clothes. It's just at a discounted price. There is nothing to frown upon for that," one shopper said.

"It wouldn't be for me. I'd rather just go myself to the Gucci store and buy what I want," another shopper said.

"In this economy? Come on. You want to do something like that. You want to save money wherever you can. I don't care how rich you are, you didn't get there by spending money. You got there by saving it," another shopper said.

Brandon Goldberg brought three garbage bags of clothes to Buffalo Exchange hoping to make some cash. What they won't buy, goes into the donation bin, which the store donates to charity. He received $50.05 for his goods.

"Well, at least you're getting something instead of it going in the trash," he said.

Brandon says it's recycling. DeClay and Melamed say it's a winning business model.