Duke: Maybe retailers should start brands

"We could go vertical," he said. "We could get some venture capital. It's a little far fetched, but...if (brands) want to compete with us directly, maybe it's time to compete with them. We know enough to do it."

The panel also discussed:

• How to operate in a tough retail environment (watch inventory and expenses)

• The growing threat of the internet, from manufacturers going direct to venture capital-backed internet companies that eliminate the risk of shopping online by offering free shipping both ways and free returns

• The importance of maintaining strong relationships with manufacturers and making your voice heard with them.

The panel included Bruce Cromartie (middle) of BC Surf & Sport, who operates 16 stores in six states and Mikke Pierson (right) of ZJ Boarding House in Santa Monica.

One big concern Bruce mentioned: the slowdown in the skate shoe market. He said Nike's popularity is important to anybody who sells skate shoes but also an issue because it's not such a good thing to have one brand be such a big sales driver.

"It's nice to have depth," he said.

The more established skate brands have more of a "stale feel" in the market right now, Bruce said.