Nevertheless, at clothing stores in malls, the volume and level of discounting is running about 10 percent more than a year ago, said John D. Morris, an analyst at Wachovia Capital Markets.

Holiday orders from clothing stores were already about 15 percent below last year's, and some stores are now canceling orders, said Arnold Cohen, co-founder of Mahoney Cohen and Co., an accounting firm for the apparel industry.

And industry figures indicate more shoppers are just staying home. Some industry sales forecasts say the holiday season could have the weakest growth since the early 1980s.

As the economy has turned sour, Americans have already been flocking to discounters, buying more store-brand cereals and peanut butter and mending their clothes instead of buying new ones.

For the holiday season, that may mean shoppers will look for more practical gifts instead of luxuries, said Tim Henderson, senior director and consumer strategist at Iconoculture, a cultural trend research company.

Analysts say shoppers this year may try to avoid using credit cards when they do spend.

Rodney Petreikis, 42, and Trina Harmon, 36, who were visiting Cincinnati from Malibu, Calif., said they will be making some of their own gifts and plan to rely on cash for what they do buy.

"I use my debit card instead of a credit card, so I don't end up spending more than I have to," said Petreikis, an actor, director and writer.

Even the wealthy have cut back on status symbols and could pull back even more as layoffs rise in the financial industry.

Online jewelry seller Blue Nile Inc. told analysts last month the credit crunch is hurting sales of jewelry priced from $2,000 to $15,000 because shoppers can't charge as much on their credit cards.

Prices on consumer electronics have come down dramatically on everything from flat-panel TVs to Blu-ray DVD players in the past few weeks as stores appear to be reacting to a sharp falloff in demand, said Jeff Trester, co-founder of tracking firm PriceSCAN.com

Throughout the holiday season, business at malls is expected to remain sluggish. The toy business, generally less vulnerable to economic woes because parents tend to cut back on themselves first, could also suffer.

Sherrie Krieg, 63, had been planning another big year for holiday gifts, most likely spending the same $5,000 she spent last year on her family including two grandchildren.

But Krieg said she and her husband, a retired factory worker, who live in Milwaukee on a fixed income and depend heavily on investments, said they will cut that in half because of the market's turmoil.

Her grandchildren, she said, "will have to learn it's not going to be the same."