For The Kids

The most valuable consumers in the retail industry right now are people who carry no cash, have no credit cards and often throw tantrums in shops. They are infants and toddlers - and at a time when sales in many stores stagnating, they're fueling a major boom in baby clothes.

While overall clothing sales dropped in 2002, sales of infant and toddler clothing shot up nearly 21 percent. There's no baby boom to account for the spike in clothing sales. The percentage of children younger than 5 actually has come down in 2000.

So what makes baby clothes such a bright spot in a still-sluggish economy? Infant and toddler clothing sales get a big boost from gift-giving, said Marshal Cohen, chief industry analyst for the NPD Group. "In the kids' business, more than any other business, the gift-giving syndrome is a tremendous part of the buying pattern," Cohen said. "And people who give gifts tend to give brand names and designer wear."

Let's not forget the fact that that babies and toddlers grow more quickly than adults and older children and that their wardrobes need to be replaced more often. And a natural parental desire to nurture children keeps sales humming even in a down economy." People always want to be able to provide for their kids, and when it comes to cutting corners, most people don't want their kids to have to be involved in that."