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From July 2008
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This current calendar year has not been kind
to apparel retailers, who had reason for high
hopes coming off a 2007 in which clothing sales
of all sorts increased nearly across the board.
Total apparel sales rose 3 percent last year to
just under $200 billion, led by children’s
clothing (6 percent gain) and menswear (4
percent), according to market research firm NPD
Group. Dresses for women and girls and dress-up
looks for men (suits, tailored clothing) were
the big movers, notes Marshal Cohen, NPD’s chief
industry analyst for apparel.
Results-bred optimism faded faster than a
knock-off T-shirt, however. Fashion retailers
began marking down spring and summer garments as
early as March, and fall merchandise began
showing up in stores prior to Memorial Day
weekend.
This drop in consumer demand has been a boon for
off-pricers like Ross Stores, which operates the
Dress for Less chain, but middle-of-the-road
retailers like Gap have found the going pretty
rough. Gap sales fell 4.8 percent in the first
quarter as same-store sales dropped 11 percent
across Gap, Old Navy and Banana Republic units.
During one four-week period this spring, Old
Navy’s comps plunged 27 percent.

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