95% of the company's sales come from its retail stores, and the remaining 5% come through its catalogue and website. While Chico's stores account for the bulk of the company's sales (73.5% in 2006), the strongest growth has been in its WH|BM stores. WH|BM grew 40% last year, while Chico's grew only 10%. Sales growth has been strong in past five years, but has slowed in recent months. Generally, women's clothing sales are closely tied to the state of the economy, and in the event of recession and slow consumer spending Chico's will struggle to maintain its revenues.
To reverse this trend, Chico’s is looking to grow through its two niche concept lines rather than its traditional namesake brand. to devote more attention to its newer concepts, especially Soma, while streamlining the assortment in its existing brands.  Recently, the company has been experimenting with expansion within its concepts. It is looking to increase its offerings in non-clothing gift items (leather goods, watches, gifts for children, etc.) within its retail locations. The compay is also expanding efforts to increase its retail square footage, relocating and pursuing larger properties for new stores. (Read more at Wikinvest )