Bargain hunting expected to rule this season

Bargain hunting and hitting the stores early are the themes heading into the holiday shopping season this year.

Last year, consumers were skeptical and unsure about the future of the economy. The shopper has since adjusted, knows how to look for discounts and is expected to do so, according to a National Retail Federation report released Tuesday.

"While last holiday season was filled with chaotic confusion, adjusting to uncertainty has now become routine for many Americans," said NRF President Tracy Mullin.

Shoppers are expected to spend an average of $680 on holiday-related shopping, a 3.2 percent drop from last year's $705, according to the survey.

Shoppers have learned how to shop for bargains and sales. According to the survey, more than half of shoppers say that sales and price discounts will be the most important factor when deciding where to shop.

Not surprisingly, the majority of holiday shoppers, (70 percent) will purchase from discounters this year, though more than half (55 percent) will also hit the department stores.

And one in 10 shoppers will buy gifts or other holiday-related merchandise at thrift or resale shops, according to the survey.

To accommodate for soft sales, retail experts say the stores are cutting back on inventory.

Unlike in the past years, there may be shortages of hot items this year.

"Once the most popular items are gone, retailers won't have anywhere to get them, so if there was ever a holiday season to buy early, this is it," Mullen suggests.

Whether shopping to get the best selection or attempting to stretch out spending over a longer period of time, shoppers are starting early.

According to the survey, 39 percent of Americans will begin their holiday shopping before Halloween, which is comparable to previous years.

Shoppers are expected to cut their spending slightly on family members while cutting way back on gifts fro friends and co-workers. Spending on family will decline by about two percent from $395 to $387. Buying for friends will see double-digit drops, according to the survey.

One expected bright spot this season may be spending in the food and candy category. Shoppers are expected to spend $10 more in this area. Spending on other non-gift categories including decorations, greeting cards and flowers is expected to drop.