Retailers may be worrying about the credit crunch hitting consumer spending, but two fashion retailers’ stellar performances this week have proved that with the right product, customers will come flocking.

Burberry announced a 31 per cent increase in pre-tax profits, crediting some of that performance to the soaring demand for its luxury handbags. Meanwhile, on the high street, Ted Baker defied high street woes with like-for-likes soaring 14.3 per cent in the 13 weeks to November 10.

If you look at both brands, one thing they have in common is great product. At Burberry, Christopher Bailey has breathed Britishness and style back into its designs. And, at Ted Baker, eccentric chief executive Ray Kelvin has ensured the brand remains quirky and unique.

The fact that Burberry chief executive Angela Ahrendts has placed so much emphasis on realigning Burberry with its British identity – something that some critics felt had become lost – is particularly notable.

Models sashay down the catwalk to the sounds of British artists, Bailey is a Yorkshireman and the design team is 80 per cent British. “It’s British through and through,” said Ahrendts. “Christopher has taken that and made it modern.”

Both Burberry and Ted Baker have identity and character – something that many high street fashion chains certainly do not.

Ahrendts said she believes Burberry’s diversified product offer is the key to maintaining people’s interest. Aside from the popularity of its luxury handbag range, which shows “no sign of slowing down”, she said the retailer will also start to experiment with jewellery more. There are also grand plans to increase its footwear collections; its designated shoe space in US department store Saks Fifth Avenue has quadrupled.

In contrast to these success stories, Next said last week that its outlook was dicey because consumers are struggling to cope with high levels of debt. And, earlier this week, French Connection said that to achieve the same profit levels as last year depended on an improvement in the UK retail environment.

Arguably, those who shop at Burberry may always have spare cash to splurge on luxury purchases, but Ted Baker has proved that soaring sales are possible in this difficult financial climate because it delivers what customers want.

Perhaps some of those who are quick to blame external factors for a less than impressive sales performance should first look at the product that is lining their store walls.