Cheri -
My daughter is 26 and we have faced this problem her whole life. The following stores are some I've found and currently use:
Ann Taylor (also Ann Taylor Loft) - They have very good online sales but the best deals are in the store on the clearance racks. Unbelievable savings there!
Banana Republic - $$$$$ but I find a few things now & then on sale.
Gap - Again, I hit the sales.
Old Navy - great prices, clothes are amazingly good quality for the price. The only thing I have found not to be true to size are the skirts. You might want to watch them. The waist is generally huge.
American Eagle - Their prices are ok, but I like to hit their sales also.
Petite Sophisticates - shop their sales. A lot of these stores in the malls have closed (such a shame) but if you have access to one, you can usually find a lot there. They have a website but selection is a little limited.
Hope this helps! I need help finding women's size 4 dress shoes for under $200. I found Cinderella of Boston but that is the only place that actually carries any kind of selection that I know of. I've been searching for years. Zappos will have something occasionally, but it's few & far between and usually soooo expensive.
Good Luck!