Holiday shoppers are still taking their time

Stores are struggling with a number of economic headwinds — a slumping housing market, a credit crunch and higher food and gas prices — that are making consumers more frugal about spending. Meanwhile, one bright spot is that the job market has held up, though U.S. payrolls grew at a modest pace in November, according to government figures released Friday.

Linda Thompson from Rochester, New York, who was at the local Marketplace Mall, said that she expects to spend less this holiday season.

"Everything is just more expensive, so we're shopping specifically by looking at prices and trying to get a good deal," she said.

But some analysts believe that stores also are at fault for generally disappointing business because with few exceptions, there is not anything exciting to buy, particularly in clothing. Hot items include the hard-to-find Wii from Nintendo Co., the 80-gigabyte Zune media player from Microsoft Corp., and some hot toys like anything Hannah Montana and Activision Inc.'s music video game "Guitar Hero III."

(MSNBC.com is a joint venture of Microsoft and NBC Universal News.)

The popularity of gift cards — which stores are promoting heavily — has hurt stores because it has hurting impulse buying, Cohen said.

"We are seeing good days and slow days," Jerry Storch, chairman and CEO of Toys "R" Us, said Sunday. He added, however, that 50 percent of the holiday business is "still ahead of us."

Storch noted that shoppers are buying closer to Christmas Day and said he expects the last Saturday before Christmas to rival the day after Thanksgiving. The toy retailer will be offering another round of planned discounts this week on such popular toys as Smart Cycle, from Fisher-Price, for $89.99.

Best Buy Co. officials said that traffic was strong this past weekend, with shoppers buying flat-panel TVs, GPS systems and game consoles. Chuck O'Donnell, a manager at the Best Buy store in West Paterson, New Jersey, said many customers are looking for the Wii.

Karen MacDonald, spokeswoman for Taubman Centers Inc., which operates 24 malls across 11 states, said business Saturday was anywhere from unchanged to up mid-single digits from a year ago. For the week ended Saturday, sales were up anywhere from low to mid-single digits from the year-ago period.

"The momentum is definitely building," MacDonald said. She added that electronics — Global Positioning System receivers and digital cameras — and UGG sheepskin boots are among the strongest sellers, but home furnishings remain weak. She added that stores are reporting a spike in sales of gift cards.

Meanwhile, online retailers are preparing for the busiest shopping days ahead this week. Internet research company comScore Inc. reported Sunday that total online spending from Nov. 1 through Dec. 7 has reached more than $18 billion, up 18 percent from the same period a year ago.

"It was a terrific kick-start to December, but we expect the upcoming week to be the heaviest online spending week of the holiday season as the procrastinators and late-season deal-seekers come out in earnest," comScore Chairman Gian Fulgoni said in a written statement.

Don't miss this on MSNBC.com Pass it on: Sons of infertile men may be next The eight biggest Olympic marketing debacles Reality show judges range from wise to wacko Cosmic Log: Is this your jetpack? Forget your inhibitions: World's sexiest islands

MORE FROM HOLIDAY RETAIL

Holiday retail Section Front

FedEx projects busier holiday peak Scared retailers create shortages of hot toys Wal-Mart, Amazon, Target in DVD price war Consumers are changing, but are retailers? Can’t-miss holiday gifts for the traveler in your life Interactive: Hot, and cool, holiday gifts How is the recession affecting your holidays? Neiman Marcus scales back excesses, sort of Stores say sales may finally be turning around Tradition, not fads are in stores this Christmas Holiday retail Section Front   Add Holiday retail headlines to your news reader: