I've really gone off Target in the last year or so. When DS was a baby in 2006 I found all kinds of lovely stuff for him there but this year I found myself wrinkling my nose at a lot of it. Of the stuff I did buy, I found several items shrank in the wash and had crooked seams. And the girl's stuff was worse! A few items I have just thrown out because they aren't worth keeping for hand me downs, which I think is a terrible waste.

Compared to the Pumpkin Patch stuff my SIL bought for them, after a few washes I could really see the difference between PP and Target and even DH noticed the quality difference.

I also keep an eye out for Myer sales on Milkshake and Sprout.

You can pick up great bargains online - a couple of websites I like are Treasures for Little People and Kidz Brandz (Australian sites) where you can buy American kids clothes. I always shop for the clearance items at the end of season and just in the last week I've picked up some great Baby Gap, Osh Kosh and Old Navy summer dresses for DD and T-shirts for DS for about $15 each. They have Carters items too, for the Carters fans in this thread!

I very rarely pay full price for any kids clothes, but I do like them to be dressed nicely, so I keep my eyes open.