As a former owner of a children’s consignment boutique in Mass., and as a mom who bought second hand for her two daughters as they grew up, I am a firm believer in second hand. You can find so many treasures at yard sales, thrift stores, and consignment stores. Many still have the tags on them.
You may want to check out the upscale communities in your area. I would also try Craigslist, and the small penney saver papers in your area.
Since you wash the clothes anyway, look at a gently used treasure as a real find. My customers would always tell me that they were thrilled to find lovely, gently used clothing for many reasons. It was already softened, they were able to buy boutique brands that they might not afford otherwise, and they had extra money for groceries and fun.