Women’s Clothing Sales Fell 3% in February and March from a Year Earlier

“Gas prices are rising, home values are falling, credit cards are maxed out—and there’s nothing to wear in the closet!”

The economic downturn is driving women’s fashion choices in two directions.

Market research firm NPD Group said women’s clothing sales in February and March fell about 3% from the same period a year earlier.

“In an economic downturn like this, people choose to look through their closets instead of buying new clothes,” said Wendy Liebmann, a consultant at WSL Strategic Retail.

Yet fashion companies such as J.Crew and Coach are targeting “true style setters” who remain undeterred by economic pressures, offering distinctive items that are hard to find elsewhere.

The prices may be steep, but the quality and design make up for them.

“In a recession, women scrutinize their spending more carefully, so those differences can become even more decisive,” said Coach CEO Lew Frankfort. Buying such items can also lift spirits dampened by the downturn, Liebmann added.

Meanwhile, women who refuse to sacrifice style but have become more conscious of their budgets are turning away from luxury brands and toward “fast fashion” (clothing produced in short cycles to keep up with changing trends).

Consumer expert Pam Danziger of Unity Marketing predicted that fast-fashion brands such as Zara, H&M and Forever 21 “will gain even more momentum and attract more consumers.”

Still, some argue that buying cheap, disposable fashion is even more wasteful in an environmentally conscious society. Women’s wardrobe dilemmas may therefore prove difficult to resolve.