American clothes stores got caught in a trap. They decrease quality a lot and decreased the price some to get more sales. People started associating clothes with throw away items. Now those same stores are competing on price alone which is a losing game for them.
I don't think they got caught in a trap, they followed their customer's preferences and decreased purchasing power.
It costs a lot of money to make quality garments, and a smaller proportion of people can afford them. On top of that, online sales have lower cost of goods sold than sales at physical stores, so it takes some time for all those real estate leases and staffing models to adjust to the new market.
