You can remove the excess fabric at the chest by simply turning the dress inside out and pulling down the fabric over the top of the waistband and pinning it down tight. Then stitch the fabric down. This will move the waistband up to the smallest part of your waist and also tighten up the bust.
Finally, I chose a trendy uneven hemline. It's such an easy way to update a dress! For an uneven hem, add 5 inches to your front length measurement. This will be the length of the longest point in the back of the dress. Then draw the slope of the hem from the front to the back with a fabric marker. For detailed instructions on hemming a dress click here.
The final result is a wearable upcycled vintage dress that cost $4. Fashion doesn't get much more green or thrifty!
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