Gifting necessities seen as big holiday hit

Shoppers may be giving the gift of necessity this holiday season, buying up cards for gas, groceries and even utilities to help friends and family through lean times. The gift card has become popular during the holidays, providing an easy way for shoppers to make sure recipients get exactly what they want. But as job cuts grow, portfolios shrink and economic problems deepen, many people may just want help getting by. Gift cards are once again expected to be the most-requested present for the season, the trade group said this week, even as total spending on them is expected to slip this year as shoppers limit how much they spend for the season.

Cash purchases are on the rise

Cash purchases are on the rise among consumers as more Americans have already maxed out their credit cards and are trying to manage their debt. Retailers like WalMart, Target, and J.C. Penney are noticing a marked shift away from credit cards in favor of cash and debit cards. A big factor is less credit available as major card issuers cut spending limits and raise fees even for customers who pay their bills on time. The shift to cash ends Americans' long love affair with credit cards and is one of the changes in consumer behavior that has emerged since the financial meltdown that could depress consumer spending this holiday season and effect shoppers habit long afterward.

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Walmart Picks New CEO

The World's largest retailer, Walmart Stores Inc., unexpectedly announced Friday that its chief executive will retire in February and be replaced by the head of its international division, Mike Duke. The surprise change in leadership right before the crucial holiday season comes as Wal-Mart has roared back to success as people looking for bargains shop more at discounters. The company still faces hurdles in the coming months and analysts say the decision to tap an international executive serves as a testament that the company sees its future growth overseas. Mike Duke, 58, the vice chairman of the Bentonville, Arkansas based Wal-Mart will take the reins from Lee Scott on February 1. Duke, who joined the company in 1995 will take over this retail giant in one of the worst economic times.

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Stores Try to Out-Sell Each Other This Holiday

A bloody battle is currently sahping up as to who can have the better deals among retailers. Retailers have been throwing themselves at consumers with promotions and deals for the past few months

Stores May See Disappointing Black Friday Sales

Retailers such as Kohl's and Toys "R" Us will be offering even bigger cuts and promotions for Black Friday as a frantic bid to pull in shoppers. They have recently pushed steep discounts throughout November wat are usually reserved for the weeks following Thanksgiving. Bargain hunters showing up for the early morning specials are not expected to buy with the same energy as the past few years. This is mainly due to tightening credit, massive layoffs, and shrinking retirement funds. Analysts say shoppers may stick to smaller gifts this season as this holiday is expected to be the weakest in decades.

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Large Retailers Post Losses

Consumer spending continues to drop and it comes as no surprise that Macy's has reported a third quarter loss of $44 million and Best Buy slashed its profit forecast for 2009. Best Buy's most recient report comes just two days after retail rival Circuit City Stores filed for Chapter 11 bankruptcy protection.

Retail Sales Continue To Fall

The Commerce Department has reported that retail sales have fallen for the fourth straight month in October by 2.8%. Sales of autos and gasoline have continued to plummet and experts say that they show no signs of letting up. Retail sales are expected to continue to worsen throughout the holiday season and will be apart of the fastest pace of falling consumer spending in 28 years.