Uncertain economic times tend to make it difficult to maintain a luxurious lifestyle--especially when it comes to buying clothes. But that's only if you care about shopping for new clothes.  Once considered taboo, resale and consignment shops that offer high-end labels like Prada, Gucci and Chanel, are flourishing. According to a July survey conducted by the National Association of Resale and Thrift Shops (NARTS), sales climbed an average of 30% compared with last year.  In Depth: Great Ways To Save Cash On Clothes  "With this past week of insanity, everyone is looking a little closer at how to make their budget stretch further," says Cathy White, owner of the Stork & Fashion Exchange, a Connecticut-based consignment shop catering to women and children.  As the economy forces even the wealthiest shopper to reprioritize, secondhand shops are reaping the benefits. At Buffalo Exchange, a resale chain with 33 stores and three franchises across the U.S., sales grew 16.1% during the first half of the year compared with the same period last year. The company forecasts revenue of about $55 million in 2008, up from $49.4 million in 2007.  "Everyone still wants name brands, but [they] don't want to sacrifice for them," says Milo Bernstein, owner of Ina, an upscale consignment shop in New York City. "Why should they buy a $1,000 bag when they can buy the same item for $300?"  Secondhand Surge Consignment shops are breaking their own records, both in sales and influx in consignors.  Part of the reason for the strong sales could be that the image and perception of resale shopping has changed. Upper-middle class shoppers who were once embarrassed to be caught in these stores are now bragging about how much money they saved. And in other cases, people just need the money.  "Items that were otherwise held onto are becoming extra income for a lot of women," says Jodie Mclaughlin, owner of Rags to Riches in Wilmington, Del.  One of Mclaughlin's consignors was the caretaker for an elderly woman who gave her a number of Chanel, Hermès and Tiffany items. She valued these things and had trouble parting with them until it was time for her daughter to go to college--then the money became more important than holding onto the items.  Another consignor was evicted from her budget-friendly sublet and had to find an apartment of her own. She brought anything of value into the secondhand store to try to raise some much-needed funds.  "I have really heard it all--bad divorce where the wife was selling the husband's things; selling jewelry to pay vet bills; overspent on formal gowns and needed to sell before the credit card bill came," Mclaughlin says. "One consignor told me that her budget had been so tight that she wasn't spending anything at all if she didn't have to. She was so excited to get a check for her sold items that she treated her husband to a night out for dinner."  An Improved Image Whether it's advertising, a sign of the times or simple word of mouth, whatever high-end consignment shops are doing to get luxury items and more shoppers, it's working. The NARTS' survey showed 85.8% of the stores have experienced a jump in new customers.  "Consignment stores are much more professional, organized and well-kept," White says. "I have customers who come in and shop, and it takes a while for them to realize they are in a secondhand store."  It could be much simpler, however. In a sense, a tough economy is the best possible thing to help boost the image of a consignment shop. Owners of high-end apparel and accessories need money, so they sell off their luxury items. All of a sudden, high-quality merchandise appears in consignment shops. Bargain shoppers then see those items on the shelves and racks and, voila, the secondhand shop becomes known for selling the best merchandise.  Do you shop at secondhand stores for luxury clothes and accessories? Have you had good or bad experiences? Weigh in. Add your thoughts in the Reader Comments section below.  Their success is coming at the expense of traditional retailers. Department stores and specialty retailers are shuttering their doors (Ann Taylor (nyse: ANN - news - people ) plans to close 117 stores, Macy's (nyse: M - news - people ) is closing nine, Talbots (nyse: TLB - news - people ) is closing 22 stores and jewelry retailer Zales (nyse: ZLC - news - people ) is closing 105), yet many resellers are actually expanding. According to the NARTS, the industry is growing at a rate of about 5% a year.  Buffalo Exchange is planning to open two new stores in 2008 and three in 2009, bringing the store count to 33. And LuLu's Consignment Boutique in North Carolina increased its square footage to 10,500 from 3,000 and added 13 employees in the past year.  Resale shops are even expanding their advertising budgets. Mclaughlin spent $25,000 last year on advertising as a way to attract new shoppers.  "We are seeing more upscale clothing coming in now and are booked at least a week in advance for appointments for people to bring in items," Bernstein says. "People are examining how they can save money. If they haven't worn a coat in a season there is no reason to keep it hanging in their closets. They are re-evaluating their priorities and what items they really need and can live without."  In Depth: Great Ways To Save Cash On Clothes
There's no stigma associated with buying secondhand Prada, Chanel and other luxury brands. It's a growing business, in fact.