Weak Festival Sales in US

Anchor: When the Christmas carol is sounding everywhere in the United States to highlight the holiday season, some economists in the country are giving dismal predictions that this could be the worst holiday shopping season since 1991. The shopping season is yet to wind up and the final holiday sales statistics are yet to come out to verify the prediction. But our Washington correspondent shanshan finds out, one thing is for sure, that is consumers are feeling the pinch under the economic downturn.

Reporter: At the Pentagon shopping mall in Arlington, Virginia, I've done a random survey of people passing by. Thirty percent of them say their Christmas shopping is the same this year, not affected by the overall stagnant economic environment.

Jessica Lynn is one of the happy shoppers.

"It's the same, no difference."

Sarah Walmark has finished Christmas shopping, and says it's so far so good for this year, but she's not sure what it's going to be for the next Christmas.

"I already have money set aside for this year, but next year, things are line and maybe I won't have money set aside for the next year."

The mall is decorated with beautiful Christmas trees, dazzling lights and festoons. Amid the lively Christmas carols, people are busy with last-minute shopping. But as Tom Hoppin, a retired banker who lives in the neighborhood sees it, it's obviously quieter in the mall than it was last year.

"I think people are spending a lot less and the result of that is there is less frantic activity. I brought my son and daughter-in-law here, they live in Zurich, Switzerland. And they are here, we couldn't believe walking into this mall how quiet and peaceful it seemed. "

Hoppin says his family is changing the gift-giving tradition this year. While kids are getting pretty much the same amount of presents, adults are expecting less gifts from each other.

"In our family, our past tradition is each adult gives each of the other adult a present. And this year, we're having what we call a Secret Center, meaning that one present is given to somebody else in the family. So each adult will only get one present instead of maybe ten. So there is the sense of gift giving, the expectation, but just less, it works out nicely. "

Brian Shaffman works as a salesman at the shoe section of the Macy's department store in the mall. He says he's observed a reduced flow of customers during this holiday season.

"In women's shoes where I work in Macy's, I've seen an influx of business. But in the whole mall, I think business is definitely decreasing from the last year at this time. A lot of people are at the mall, but fewer of them are carrying bags, purchased items than last year. So I think that it's the tradition to go out to the mall and be seen, walk around, but I don't think people are buying much. "
Retailers have done whatever they could to boost the final sales, by giving out drastic price cuts, and extending hours. Some are staying open for 24-hour periods in a last-ditch effort to capture sales. Louis Callagy, spokeswoman for Gap, a famous clothes retailer, says:

"No retailer is insulated from the macroeconomic pressures, and at Gap, we're looking to manage promotions, to drive traffic and to turn around the momentum of our business."

This has worked to lure some customers. Jeremy Gateraoski says he is looking for bigger discounts at the last-minute shopping.

"I look for more sales so I could save money for bills and things like that."

So is Michelle Pensy.

"It is on sale, drastically reduced."

From what I see, the festive atmosphere is strong and the Christmas sale is not that bad. But apparently, people tend to be more careful when spending money, and are modifying their festival traditions to cope with the gloomy economy.