Retail watch: Apparel sellers suffering from crowding out effect

|By:, SA News Editor

Analysts don't think the challenges facing apparel retailers in the U.S. will go away anytime soon.

Pent-up demand in the housing and auto sector has crowded out consumer spending on clothes to push the sector into a highly-promotional stance heading into the Back to School and holiday seasons.

While retailers selling appliances (CONN, HD, LOW) are forecast to benefit from the trend, mall-based chains (KSS, BKE, ANF, WTSL, ZUMZ, GPS, URBN, GES, PSUN, ARO, EXPR, AEO, JCP, M, DDS) are on watch.