Shoppers, stores make Christmas fit the tough times

For the first time as an adult, Kate James is not buying Christmas gifts. There will be no last-minute shopping sprees, no Christmas cards and no tinsel.
"I've been unemployed for a year and a half," said James, who left her job managing a Franklin alcohol and drug rehab facility in 2007. "I've always spent way more than I could afford, and when you don't have that option you have to be creative about what you can do."

The recession has cut deeply into how many Nashville-area consumers and shop owners will celebrate and sell for Christmas.

Consumers have trimmed some friends and co-workers from their gift lists, while high-end retailers have announced sales at "recession-friendly" prices. Even Hallmark is selling more than 20 recession-related greeting cards. One says, "Due to high costs, Santa had to cut back on his help this year."

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But fewer Christmas cards are likely to be mailed. Between Thanksgiving and Christmas Eve, the U.S. Postal Service expects to handle about 12 percent fewer cards, letters and packages than a year ago.

Rick Austin, 47, said he is trimming his gift list from 20 people to only his four daughters this year. Austin, who was the sole financial provider for his family, lost a job as a customer service manager at global health service company Cigna in September. He hasn't found a new job.

"The mood has been less than optimistic," Austin said.

Christmas gifts for his four daughters will cost less than $500 — half of what Austin spent last year. His 17th wedding anniversary is the day after Christmas, but instead of having a dinner out as he did with his wife last year, Austin said he plans to grill steaks at home and whip up homemade mashed potatoes.

Stores reduce prices

Stores are tweaking marketing messages to recognize the lingering recession; many are also selling items at lower prices to appeal to cost-conscious shoppers. For example, beauty products retailer Kiehl's offered value-oriented Christmas packages for the first time this year. Six lip balms that would normally sell for $49 are now in a holiday package for $32.

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