Apparel industry

Apparel firms will continue to do poorly during the holidays 1994. Low inventories should help these companies operate at a more profitable level, because fewer marked down items will be necessary. However, private label firms are competing against foreign firms with lower-priced items, and national brand firms are losing sales to private label manufacturers. As interest rates continue to rise, however, consumers will begin to buy more soft goods, rather than large ticket items with more interest involved.