Economy a struggle for some at Christmas

GREEN BAY - The frenzy of Black Friday and Cyber Monday are over. But for some 20 percent of consumers, the holiday shopping hasn't even started yet.

But while the economy has sidelined some, it has put others in a better position to shop this year.

Overall the economy is showing signs of improvement and with it renewed optimism for the holiday shopping season. And that helps to fuel the retail fire.

"We've come through some really bad times. I mean 2008, 2009, 2010 were really tough years you know. I think people are maybe starting to emerge from their bunkers a little bit," said St. Norbert College economics professor Kevin Quinn.

Quinn says after holding back on spending, facing reduced credit, and rising unemployment, more and more consumers are ready to spend. And that has retailers preparing for profitable end of the year sales.

"The reason why projections are up are because there has been recovery in the economy," explained Quinn.

Christmas shopping lists vary for consumers though. Some are buying for a few, while others have long lists. And the amount they plan to spend varies.

Taking into account some spending more and other less, the average amount consumers are projected to shell out is $548.56 on holiday gifts for everyone on their list this season, that according to a National Retail Federation survey. This will mark the fourth year of steady spending growth, but still short of the amount we actually spent in 2005, 2006 and 2007 before the economy crashed.

"This year so far if what I've seen with the traffic and sales we've had in the last few weeks, last month or so, this year should be a very good year for us," said Judy Tullius, manager of Bay Park Square mall in Ashwaubenon.

At Bay Park Square shoppers have been in the spending mood which indicates spending projections are on target.

Megan Headington watched her dollars closer in recent years, but this year is feeling better about her economic future.

"It's the one time of year you can, material-wise, show someone how you appreciate them and I always, we definitely, pick out the gifts according to the person, we don't just find a good deal and buy it. We look for the perfect gift," said Headington.

And even if the economy isn't totally back to normal, the growing perception is it's headed that way. And that's enough to get people spending.

"I think things are a little bit better. I feel little bit better than they were last year," said Gary Englebert.

"About your situation or the economy?" asked FOX 11's Mark Leland

"Both. I think it's turning around I think it's going to be better," replied Englebert.

Overall holiday spending is expected to reach $586 billion in the United States. That includes everything from gifts, to food, to decorations, even holiday cards and flowers. That would be a 4.1 percent increase over last year.

"Season so far is looking good for us. We're happy. I'm happy with the way it flows," said Duane Van Straten, store manager of Green Bay's eastside Walmart.

The nation's number one retailer Walmart brought back its holiday layaway program for the second year in a row.

Why do we need layaway?

"Customers told us that they wanted to use it as a tool for the Christmas holidays," explained Van Straten.

That tool allows those without credit, or cash on hand, to spread payments out for up to three months on select items like toys, appliances and electronics.  

In the first month of the program, which kicked off in mid-September, $400 million in layaway merchandise was snatched up companywide. Items that may never have made it off the store shelves otherwise.

"It was very successful," said Van Straten. "The customers were really happy to see us bring back the layaway program. You know with the economy a little tight, you know unemployment is a little high, so it gives them a planning tool to buy stuff for the holidays."

But while the shopping has already begun for some 80 percent of consumers, others are holding off. Some are procrastinators; others still find themselves unable to recover from the economic downturn.

We asked participants waiting in line for a free food giveaway in Green Bay before Thanksgiving if they had money to spend on Christmas gifts.

The response from several was "no," blaming it on a lack of work.

"Oh yes it's tough," said George Bluebird.

Bluebird is looking for work with the Green Bay unemployment rate still hovering around 8 percent.  For his family, including two children, Christmas will be more about being together than presents under the tree.

"I'm going to celebrate it to the best of my ability. Be with my kids. My family, do the best I can to be there," said Bluebird.

"There's definitely a more 'let's wait until we have the money to buy it' mentality than there was a few years ago," said Quinn.

Quinn says as we emerge from the down economy, consumers are better able to put holiday spending in perspective--it's not what we spend, it's the thought that goes into the gift.

And isn't that what the true