Fear plus frustration equals premature — and aggressive — markdowns.

That seems to be the current state of play as the struggling economy has turned retailing into a challenging game of inventory management, urgent belt-tightening and guesswork planning for seasons ahead.

Skyrocketing food and gas prices are pinching consumers at all income levels, and industry executives are said to be scurrying to get their receipts and expenses in line with their rate of sales. The cold, hard reality is that the merchandise in stores today was ordered almost six months ago — when the economy, while weakening, was in better health. Making things worse is that no one knows when the economy will hit bottom, with many saying there won't be any improvement for at least two years.

"I've never experienced anything like this before," said Jane Elfers, chief executive officer of Lord & Taylor. "When I speak to veterans of the industry, who have been in the business for 40-plus years, they tell me they've never seen anything like this, either. It really puts the pressure on retailers to innovate to get customers to shop."And if they don't, the warning signals are flashing: On Friday, Linens-N-Things became the latest in a growing list of retailers declaring bankruptcy this year.

Meanwhile, markdowns are creating greater angst than usual. Last week, consumers on retailers' e-mail lists found their in-boxes full of promotions. Macy's, Bloomingdale's, J. Crew, Neiman Marcus, Endless and Sigerson Morrison were offering anywhere from 20 to 40 percent off, usually with free shipping.

"The sales are across the board, not just online," said an executive at a large, multichannel retailer. "Everyone is trying to get rid of inventory they bought a lot earlier, and not have it hanging around in the fall."

On Friday, Saks Fifth Avenue raised some eyebrows with advertisements in New York newspapers promoting 40 percent off selected merchandise. The flagship had many red signs atop racks flagging 40 percent off, across the designer sportswear and couture floors as well as bridge and contemporary labels. Most often, spring goods were on sale, whereas Fall One deliveries appeared at full price. The main floor had plenty of handbags at 30 percent off, drawing swarms of shoppers.