Shop owners complain that "hoodies" and hats act as camouflage, preventing video cameras from identifying young men robbing a store.
Also fuelling the trend is a government campaign to tackle what has been referred to as the country's culture of disrespect.
Prime Minister Tony Blair has promised to make addressing the problem a priority during his third administration.
A sign at a Liverpool store
About a week ago, Britain's largest shopping complex, the Bluewater in Kent, banned hoodies – a term for the youths themselves or their hooded jackets and sweatshirts – to stop families from being intimidated by gangs.
The centre says since then, the number of shoppers has risen by 22.6 per cent.
"They're just hanging around in gangs," said one shop owner in Liverpool. "They've got nothing else to do, and it is really intimidating to people. I'm trying to stamp down on it."
Young people hanging out in Liverpool
But for many young people, wearing a hooded sweatshirt is just the latest trend. They say they don't want their clothes to automatically turn them into suspects.
"I'm wearing a hood, and I'm not even a thief," said one teen in Liverpool in a CBC interview. "I'm wearing a hood because it's raining, but it doesn't mean I'm going to go in and rob that shop, does it?"
Several stores in the city have put up signs, saying clearly that hoodies are not welcome.
Some community workers say this whole stigma on young people is just going to isolate them even more, making problems with anti-social behaviour worse rather than better.
"It's very controlling and frustrating for young people," said youth outreach worker Dhercoj Shamoo. "And they haven't even consulted young people themselves."
