Carter's is a brand that's been around forever. Named as the Best Overall Baby Clothes Brand in the 2011 Readers' Choice Awards, parents overwhelmingly choose Carter's baby clothes for the quality and reasonable prices.
On top of that, the brand is widely available at nearly every mass market retailer.
Personal experience with Carter's has taught me that it runs just a touch long but fits well otherwise and shrinkage is minimal even after multiple washes.
Not only does H & M bring adorable and cheeky European fashion to newborn baby clothes, the brand does it at an extremely affordable price. Even when items are not clearanced out, you can get great sweaters for less than $5 and baby basics starting at $1.99.
The only downside to H & M is the limited selection and the brand's lack of an online store. But if you live near an H & M retail location, stock up!
Again, personal experience has taught me that H & M runs extremelybig. My daughter is pretty average size-wise and her 4-6 months clothing from H & M fit until she was nearly a year old.
A brand found only at Target, Circo is well-priced, holds up during washing, and offers a wide selection from leggings and baby t-shirts to socks and bodysuits.
The boys and girls choices are equally cute (which is a struggle for most brands) and Target has done a great job of creating gender-neutral clothing that doesn't lean on the side of too-girly or too-boyish.
Circo tends to run a little on the small side, so buy one size up when making your purchase.