• MSNBC, Friday, April 25, 2008 10:30 AM

Clothing retailers are facing a double whammy of drooping consumer interest--fueled by economic woes--coupled with their own rising costs for raw materials such as cotton, fuel to transport goods and even labor in China. Their problems could turn out to be more severe than for other retailers because, for many people, a new skirt or shirt is more of a splurge than a must-have item.

The down economy is hitting a broad swath of clothing retailers, ranging from stores aimed at older women to those that appeal to trendy teens. Sales at chain stores open at least a year fell 0.5% in March, the weakest showing for that month since 1995, according to International Council of Shopping Centers.

Burt P. Flickinger III, managing director of Strategic Resource Group, thinks more Americans will make better use of hand-me-downs and secondhand stores. One bright spot for clothing stores, he says, is that Americans' thickening waist lines are driving some sales as more adults find their clothes growing increasingly snug. "The only thing that, ironically, is saving the fashion industry is obesity in America," he says.

Read the whole story at MSNBC »