In specialty apparel, the top 10 companies will have 40 percent of the business.

Many specialty apparel and department stores struggled to regain market share or keep pace with their past performances.

Sales at department stores and specialty apparel and off-price stores fell, by 2.7 and 4.1 percent, respectively.

"In the last week there's been a pickup, particularly evident in specialty apparel and department stores," Mr. Missett of Morgan Stanley said.

Evidence, albeit fragmentary, suggests there is growth in construction, specialty apparel, medical instruments and luxury consumer goods like jewelry.

Reporting stronger sales in general merchandise and specialty apparel, Ms. Wells predicted that dollar sales would approximate last year's 6 percent gain.

Sales at specialty apparel and accessory stores, where business was particularly slow last year, increased five-tenths of 1 percent in February.

The discounting was fierce among specialty apparel and off-price chains.

Ann Inc. is an American group of specialty apparel retail chain stores for women, headquartered in New York City.

"I think in specialty apparel, it is less of a consolidation issue and more of a going-out-of-business issue," Mr. Baum said.