RACK UP 75% SAVINGS BY BUYING YOUR NEXT OUTFIT "GENTLY WORN"
By JILLIAN KASKY

(MONEY Magazine) – A $10,000 Chanel evening gown for $1,000. An $1,800 Armani men's suit for $450. Those are the kinds of bargains sharp shoppers are finding these days. Where? At a fast-growing category of stores that sell what's euphemistically called gently worn clothing.

Fact is, secondhand clothes have gone uptown. Cities such as Boston, Los Angeles and Washington, D.C. now have used-apparel stores that resemble upscale boutiques in everything but their price tags. Much of the clothing comes in on consignment from people who won't wear the same thing twice. Buyers who overcome any initial squeamishness about donning somebody else's duds can save 75% to 90%--leaving plenty of spare cash for a thorough dry cleaning. (And when you're done with the clothes, you can return them to a consignment shop. You'll get back about 50% of what the next buyer pays.)

Today's used-clothes buyers range from entry-level job hunters to six-figure business barons, says Jeff Casler, owner of Second Time Around on Boston's tony Newberry Street and two other stores. "People used to rush past a used-clothing store," he says. "Today they're intrigued."

Sales at used-clothing stores like Casler's are expected to grow 20% this year, according to the National Association of Resale and Thrift Shops. That compares with a modest 2.5% projected growth for stores that sell new clothing. But clothes aren't all that consumers are snapping up secondhand. One of the fastest-growing stores in the pre-owned game is Play It Again Sports, with 650 stores nationwide. Typical bargain: barely used $160 Rollerblades for as little as $90. Computer Renaissance's 49 stores nationwide offer deals like a year-old Macintosh computer, once priced at $1,700, for $1,000. Used cars too are enjoying a renaissance. A two-year-old car with 24,000 miles on it sells for about 33% to 50% off the original sticker. Small wonder that used-car sales are expected to double those of new cars this year, for the first time ever. --Jillian Kasky