Gone are the days when used-clothing stores were big rummage pots crammed with clothes that smelled bad. Today, many of the hottest used-clothing retailers can be found next door to their upscale retail cousins in urban shopping districts.

To change their image of musty junk shops, resale shops - with the more parvenu title of vintage or consignment shops - are attractively displaying merchandise in spaces that are stylishly decorated.

The stigma of used clothing has also had a makeover. In the '80s, most status-conscious youngsters wouldn't be worth their Member's Only jackets if they were seen shopping at a resale shop. Yet, sales of used clothes and household items have more than doubled in the last 10 years to almost $11 billion in 1997, according to the Census Bureau.

Although that's still just petty change compared to the overall size of the retail industry, the business has changed during the past 10 years, says Kevin Kish, owner of The Closet, Inc., in Boston, Mass. The store, which opened 14 years ago, has always defied the tacky tradition of thrift shops by specializing in used couture clothing. Kish says that customers used to carry out their purchases in unassuming plain brown bags. Now the store's name is proudly stamped on the side of each purchase's bag. "Before, people didn't want to be known for shopping in thrift stores, but they realize that there are great clothes to be had for just a fraction of the cost."

The National Association of Resale and Thrift Shops (NARTS) says the reason for that shift is because consumers today are more economical and would rather buy clothing, accessories and furniture at one-third to one-fourth of the original price so they can have money left for other things in life such as vacations, education and hobbies. "Someone can still experience the luxury of owning a black label Armani suit without paying $4,000 for it," says Kish.

Another reason that resale markets have heated up is because fashion has gone retro. As the end of the millennium draws near, there has been a throwback to the fashions and styles of past eras. The glamour dresses of the '50s, the zoot suits of the '20s and the flared bellbottoms of the '70s are all being promenaded on catwalks again. While designers may reinvent or interpret the styles of days gone by, the originals can still be found hanging on the racks of resale shops.

Clothing isn't the only booming segment of the resale industry. According to NARTS, furniture, sporting goods and pre-owned computer items are also popular resale shop offerings.