That could hurt department stores like Nordstrom Inc and Macy's Inc, already struggling with sharp monthly sales declines, as well as women's apparel stores like AnnTaylor Stores Corp, Talbots Inc and Chico's FAS Inc, which owns the White House Black Market chain in addition to its namesake stores.

"I think (consumers) are going to be very loath to buy anything," said Wendy Liebmann, chief executive of consulting firm WSL Strategic Retail, which researches shopping trends.

As for herself, Liebmann guessed that she will feel the need to be festive during this gloomy holiday season.

"But I know there's a very wonderful corner of a very wonderful closet of mine, which has absolutely fabulous stuff in it that I haven't worn for some time. So I know I will be shopping in that corner."

"But if (people) do feel they need an affordable little treat ... there are a lot of places women feel very comfortable buying used, pre-owned or excess inventory products."

According to her most recent poll, about 51 per cent of women had bought second-hand clothes, and Liebmann expects that to increase as times get tougher and more people realize that some used clothing stores sell vintage designer dresses.

TJX Cos Inc, an off-price retailer that buys excess merchandise at below wholesale prices, has outperformed in recent months as shoppers look for bargains at its TJ Maxx and Marshalls stores.

"We often talk about the resiliency of our off-price business model, and we are seeing that resiliency benefiting us in this difficult consumer environment," said TJX CEO Carol Meyrowitz in a statement last week.

... contd.