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As recently as a year ago, it seemed like clothing prices were only going to go up. But now, retailers are slashing prices in order to try and regain lost sales.

And it's not just clothing. A lot of other items are also seeing price cuts, like electronics, furniture, and even cars.

The reason for all of this price slashing?

Shoppers are apparently cutting their purchases in order to save money.

Retailers Aren't the Only Ones Feeling the Pinch

Service businesses like hair stylists and clothing retailers are also feeling the heat.

Gap Inc. is taking actions to sequentially reduce inventory and rebalance assortments to better meet changing consumer needs, as seen in its recent statement. This led to net sales slipping 8% from a year earlier to $3.86 billion.

Old Navy stores were not able to sell certain sizes and styles, while Gap struggled with mix imbalances for items including "mid-tops and casual shorts."

Recession or Not?

Some are saying this is the start of a new recession.

Others are saying this is just a temporary adjustment that we'll eventually get over.

But either way, it's definitely something to watch.

The discounts, which began earlier and are expected to continue through the end of the year, are being seen as an effort by retailers to counteract a decrease in sales volumes.

The industry seems to present a weak response by offering deep discounts on merchandise. And this is a trend that isn't going to fade away any time soon.

Experts predict this trend is going to hold on all through the holiday season until consumers get back to their normal ways of shopping.

Retailers think it may take a while for shopping as usual. In the meantime, retailers are cutting back on profits in an attempt to bring back their regular shoppers.

Discounts on Clothing Seem Inevitable

While clothing prices are expected to decrease at most retailers, some are offering even deeper discounts than others.

JC Penney, for instance, is offering discounts of up to 50% off select items.

And Macy's is offering 50% discounts on women's clothing and up to 75% discounts on men's clothing.

Meanwhile, Walmart is offering free returns on most clothing items purchased online and in store through December 24.

Victoria's Secret shoppers are only buying certain types of garments. Victoria's Secret shoppers are only buying bras on sale at two-for-$52.

Urban Outfitters and Kohl's said sales are declining for brands tailored to younger consumers.

The roses store catalog on us.promotons.com, therefore, offers consumers a great chance of bagging discounted weekly and monthly offers.

Clothing Prices May Go Down Even Further

Although the discounts are likely to bring in more shoppers, some experts are warning that they may not be enough to offset the decrease in overall sales volumes.

Consumers are making the most of these discounts, but their pessimistic approach has resulted in less consumer spending overall.

Clothing prices are the most hit and may go down even further, but consumers will not relent and spend more. What they're choosing to do is spend less on expensive items. Here too, the Conn's HomePlus flyers and weekly ads offer costlier home furnishings at the best prices.

Analysts say that the discounts are a sign of hope that the overall economy is starting to improve. This is because they believe retailers are showing signs of supporting their business.

Kohl's said demand for dressy-looks and work-ready clothing was solid. Macy's said women's and men's "elevated casual" styles outperformed as more people returned to work.

These signs may appear to be short-term solutions, but again, these are positive steps taken in these difficult times.