A new report signals troubling news for the national retail picture.

For the second straight month, retail numbers have dropped slightly... according to the Commerce Department.

So we decided to ask one segment of local retailers if they are seeing any negative impact on their receipts.

The sales are coming easier than they did this time a year ago on the Square.

Businesses like "Candlemakers On The Square", "Bella Me Boutique and Salon", and "Imagine Cakes and Candies" have seen increases in business over the past few months.

"Bella Me" worker Betty Bernard says since opening in November, the shop has only seen growth.

"Even though we opened in a time of a recession, you wouldn't know it because we really stayed busy," says Bernard.

Michael Barron has seen good sales at both of his stores, "Candlemakers" and "Morris Jewelry".

He believes more people are opening their wallets, but just not for those big ticket items.

"I think purchases are a little on the more economical scale, so for the jewelry business for example, instead of a 1 karat diamond, its a 3/4 karat diamond."

"Imagine Cakes and Candies" has also seen more customers coming through its doors in the last year and a half... which suits owner Christina Jones just fine.

"It helps me pay my bills," says Jones with a smile.

The additional foot traffic could be attributed to those that are coming to Bowling Green for the first time.

"I think some of that tourist traffic now in the months of June, July, August we're seeing people from all over the country," says Barron.

What the economic outlook for downtown will be can change at the drop of a dime.

But these merchants are optimistic that it won't hurt their recent showing of strong sales.

Barron says another reason for improved sales downtown is because many merchants have joined forces to help sell the vicinity as a "one-stop" shopping area.