"To have the biggest [shopping] weekend of the year wiped out in almost half the

country by wicked winter weather and record blizzards is really going to hurt sales

and operating profits, and it is really going to hurt government revenue," says

retail analyst Burt Flickinger of the Strategic Resource Group.

Even before the storm, runescape gold Even before the storm runescape power leveling U.S. unemployment remains stubbornly high and consumers appear more focused on saving and debt reduction than spending. runescape moneythe National Retail Federation was predicting a one percent

drop in U.S. holiday sales compared to last year.  Although an economic recovery is

believed to be underway, U.S. unemployment remains stubbornly high and consumers

appear more focused on saving and debt reduction than spending.

Again, retail analyst Burt Flickinger, speaking on Bloomberg Television.

"People are more cash and credit-constrained than at any other time in U.S. history,"

he noted.  "So they are only buying for children and immediate family members. Just

for need, not for want."

To combat sales losses, many retailers are extending store hours in the few remaining

days before Christmas.  While traditional stores clearly lost revenue in recent days,

other businesses may actually profit from inclement weather. 

Many online retailers saw a jump in orders, as shoppers unable to leave their homes

turned to their computers to make purchases.  And grocery stores and supermarkets

also saw a jump in business ahead of the storm, as people scrambled to buy food and

supplies.

"The grocery stores had a surge in business," Flickinger said.  "They were up 100

percent [in sales] per day for two days in a row before the storm."

Consumer spending accounts for more than two-thirds of U.S. economic activity.

Traffic is heavy along Maryland's Rockville Pike, outside Washington, DC.  But the

look of this commercial zone has changed over the last three years.  Many large and

small stores, restaurants, and other retail establishments are gone. In their place

are vacancies and signs advertising space for rent.

"In the last two years, from big brand stores to the little guys, I would say 20

percent of them are gone," said Paul Phan, a small business owner. 

Paul Phan owns a home furnishing store on Rockville Pike. Although his showroom is

full of merchandise, there are few customers these days. He says sales this year are

down 30 percent. He and his wife had to lay off workers, reduce inventory and stay

open longer hours just to remain in business.

"We needed to look at all the avenues to reduce our costs and the number one, of

course, is our rent, and I asked the landlord to help me out, which they agreed," he

added.

Developers who own shopping centers have slashed rents in an effort to keep tenants.

But finding new shopowners to fill empty space is increasingly difficult.

The space next to Paul Phan's has been vacant for three years. Phan says when

shoppers see empty storefronts, it reminds them how tough the economic environment is

and they feel less inclined to buy. 

Phan doesn't see the trend changing anytime soon.

"I wish I could give you the good answer, 'Yes, tomorrow will be a better day'," said

Phan.  "The thing is that consumers' habits have changed -- or the way they are

buying has all changed already. So for us to go back to the good old days is going to

take years to rebuild."

Ellen Davis, with the National Retail Federation, notes that smaller stores have been

harder hit than large retailers. "Right now for the American shopper, it is all about

low price," she explained.  "And because small retailers don't have economies of

scale to be able to order a lot of merchandise at once, they are not able to

negotiate the best prices or offer the best deals to their shoppers."

Small storeowners like Paul Phan have begun to slash prices. But for him and others

that means making little or no profit. He also says he cannot get a business loan

from the bank.

"I want to put more money into advertising to bring more customers in," said Phan. 

"I want to put money into bringing in more merchandise to give the customers more

choices. However, I don't have the resources in terms of the capital."