Return to the 'good old days'.

Surely you remember the "good old days"--the days when New York City was the Capital of the World, when the Luxury Walk of Fifth Avenue was overflowing with glamour and wealth. The good news, as we reflect on yet another half a year gone by and look forward to the next six months, is that we're right back to where we started from and on the way to surpassing it. The City's luxury market has rebounded and in a big way. It's bigger and more magnificent than before.

All cries are living entities that maintain themselves by rebuilding, recreating and rediscovering their vibrancy over and over again. Here in New York, the reports have been overwhelmingly positive.

A report released by the City Comptroller this month revealed that the New York's economy grew at an impressive 7 percent in the first quarter of this year, outpacing even the national economy.

Nationwide, things are certainly looking up. In fact, retail sales in May climbed 1.2 percent, to $335.8 billion, and consumer spending was steady, even in spire of elevated gas prices and rising interest rates, according to the Commerce Department. Shoppers have headed back to the stores and, as predicted by the International of Council Center's Chief Economist, retail sales in 2004 are likely to have their strongest performance since the boom year of 1999.

Add to all this news that tourism numbers are up, the City is bidding for the 2012 Olympics and there is the Republican National Convention to look forward to. We New Yorkers are witnessing the next cycle of growth.

Just a few years ago, nobody could have imagined all of the roles being assumed by New York's ever-changing neighborhoods. Here are a few examples, from our perspective, of how the "good old days" are back:

The Lower East Side has changed into a place for moderately priced housing and retail, replacing pushcarts and old neighborhood stores. Whole Foods may even be arriving soon.

Over in the East Village, it's more of the same. The neighborhood has been transformed into an exciting, albeit slightly off-center, college town lined with fashion and luxury boutiques galore. There is Eskandar, Ltd., Selima Optique, as well as your usual mix of fast food, funky apparel and all that the Village is known for.

Dusica Dusica is moving from 4 to 67 Prince and G-Star Raw, Bio, Daryl K, Cath Kidston of London and Rebecca Taylor can now all be round in Nolita, north of Little Italy. These shops are very chic, but still affordable.

In Tribeca, furniture designer Hughes N'Cho Allepo opens his first store on bond Street. Western Spirit, a cowboy-style clothing retailer, is moving from 486 to 395 Broadway.

Then there's Soho, a fashionista's paradise before, and now, back to its former glory. Its splendor bas returned as more and more of Uptown emigrated and established new settlements, in the form of amazing boutiques, Downtown. Leading the pack is Bloomingdale's, of course, but also Garrard Jewelers, Georg Jensen, along with the unexpected Bathing Ape, straight from Japan, and Links of London. Ann Taylor will be at 555 Broadway, between Prince and Spring, and home furnishings shop Fleur de Lis has opened at 128 Thompson. American Apparel has opened another store at 712 Broadway. There will be new hotel as well, The Bond Street, designed for the fashionable and artistic, along with another new hotel in the works, this one from actor, Robert de Niro.

Even Greenwich and the West Village have a whole new host of retailers--Pellat-Finet, Marc Jacobs, Ralph Lauren, Olive & Bette's, Christian Louboutin. Can Gucci be far behind? We're also seeing an evolution in the Meatpacking District, where you can now find the elegantly simple--Gansevoort Hotel with Henry Beguelin within, Theory by Eli Tahar across the street, The Lounge, Thom Brown, Shelly Stefee, perhaps a Louis Vuitton in the mix. Lucy Barnes bas also opened another store at 320 West 14th Street.

The Upper West Side, even through the downturn of the last few years, did not lose its glitter. Proving that the neighborhood is as vital as ever is Barneys Co-Op on Broadway. We're certain that where Barneys is, more are sure to follow. The glass and marble Time-Warner Center shopping mall bas also brought new types of retail to the Upper West Side.

The soaring skyscraper is filled with retailers such as J. W. Cooper, Face Stockholm, Whole Foods, L'Occitane, Thomas Pink, Sephora, Morgantbal Frederics, Tourneau, Bose and Elizabeth Arden. Recently joining the top-notch retail mix at the Shops at Columbus Circle is Cache. The superb Mandarin Oriental Hotel is also at the Center--a sign of the return of opulence right before our eyes. Across the road, Optique by Lenscrafters will make its debut, at 1804 Broadway. On the southeast corner of Fifth Avenue will be yet another Zales, at 39th Street, as well as a new Papyrus at Rockefeller Center, on Sixth Avenue.

On the Upper East Side, in Bloomie's Country, Third Avenue awaits the arrival of the Vornado/ Bloomberg extravaganza and more and more retailers are setting up shop along the way. Alexia Crawford, Bare Escentuals, Independence Bank, Molton Brown. Searle has also expanded on the Upper East.

In Midtown, Broadway and 42nd Street have truly become the Crossroads of the World, full of excitement and glitz, without the less-than-glamorous appearance it was once known for.

Chelsea maintains its reputation as the new art center, adding another gallery, the Stefan Stux, which will open in September. It is also home to the Maritime, a delightful hotel with an ocean liner theme.

There are new jewels in New York's crown of Luxury and Fashion--Fifth and Madison Avenues and 57th Street--the Louis Vuitton flagship at Fifth and 57th, Ermengildo Zegna/Agnona on Fifth, as well as a larger and more impressive Asprey, and Salvatore Ferragamo:

There is also Fifth's new Pucci boutique, Bottega Veneta, the celebrity magnet--Jacob the Jeweler, on East 57th Street, de Grisogono Jewelers, Oscar de la Renta at the northwest corner of 66th and Madison (presently Sergio Rossi) and a new addition--also a celeb favorite--Judith Leiber on Madison. Tara Jarmon and Vertigo will open at 60th and Fifth.

Lacoste is moving to 575 Madison; British lingerie shop Myla will open at 68th and Madison; and Alain Mikkli will open another store at 575 Madison, replacing Robert Marc. Women's footwear retailer Marmi is coming to Madison as well. Searle is expanding at 805 Madison. British perfumer Jo Malone is opening another store at 946 Madison, while Landau will open up shop at 1042.

All over the City the message can be heard loud and clear--the "good old days" are back. We're delighted to herald their return!

BY FAITH HOPE CONSOLO, VICE CHAIRMAN, AND JOSEPH A. AQUINO, MANAGING DIRECTOR, GARRICK-AUG WORLDWIDE, LTD.