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How to make the most of your holiday shopping

Retailers have had a rough year. There have been no blow-out trends (think Pet Rocks or Cabbage Patch Kids) luring people to the stores. Back-to-school shopping was an overall bust. All in all, it has been pretty dismal. But heading into this holiday season, there's actually pretty good news for consumers.

Although sales traditionally kick into overdrive post-holidays, that's not the case this year, particularly since last month's Consumer Confidence Index weighed in at a nine-year low. "We're going to see retailers discounting throughout the season," says Russell Jones, vice president of retail consulting for Cap Gemini Ernst & Young. "I don't think it'll be possible to buy too soon this season."

Marshall Cohen, co-president of NPD Fashionworld, which tracks the apparel industry, says that because retailers discounted heavily last year to encourage shoppers to spend following Sept. 11, they're going to do "pretty much whatever it takes" to match their 2001 numbers. The result? "I expect that we are going to see some creative, aggressive and consumer-friendly promotions once again," he says.

But that doesn't mean you should approach the season as a free-for-all. According to a study conducted by retailer T.J. Maxx, most holiday shoppers purchase between 11 and 20 gifts and spend more than $500. The challenge to you is making that $500 (or whatever it is you've budgeted) go as far as possible. Here are some promotions to look for and some time-tested strategies to keep in mind:

Amass discounts for return visits. Throughout the year, retailers like The Children's Place and Ann Taylor Loft have been handing out valuable promo cards. Generally, if you buy a certain amount the first time around, you get a card for dollars or a percentage off your next purchase. If you know there's one in the offing, you can strategize: Purchase just enough (and no more) to get the future discount, then return later for the rest of your loot.

Watch for e-mail discounts. In the past year or two, there has been an emergence of e-mail discounts (often 25% to 30% off everything you buy on a particular day) that supposedly go only to family and friends of the retailer's employees, but in many cases these are circulated more widely. The trick is getting the scoop on which stores are circulating the e-mails. Then you can approach friendly salesclerks and request to be included on the store's mailing list. Which retailers have used this tactic in the past? Brooks Brothers, Banana Republic, The Gap and J. Crew, to name a few. Important note: If you subscribe to the store's e-mail newsletter, you also may receive occasional discounts.

Take advantage of free shipping. In-store sales may be soft (The Gap, for example, has seen declining same-store sales nearly 30 months in a row), but online sales are expected to grow by 15% this year. That means you can't count on the generous kinds of promos (free gift wrap; spend $25, get $10 off) that you saw during the dawning of the Internet. But free shipping (you often have to spend $50 to $100 to qualify) seems to be a mainstay. As long as you do your shopping early enough for ground delivery to reach the gift recipient, it'll save you the hassle -- and the cost -- of shipping gifts yourself.

Be selective in your choice of shops. According to Cap Gemini Ernst & Young's Jones, department stores are worse off than discounters, heading into the holidays following several months of declines in sales. That means they'll start discounting earliest. But don't write off discounters: Kohl's, Target and even Wal-Mart have seen some softening of demand as well.

Ask for discounts. If the item you like has yet to be marked down, it never hurts to ask the salesperson if and when there's a sale coming up, says Daniel Butler, vice president of retail operations at the National Retail Federation. Likewise, suggests Edgar Dworsky of ConsumerWorld.org, if you missed a sale but know it occurred recently, ask for a continuation of the offer. In these competitive times, you may just get it.

Think ahead. Once this holiday season passes, it's not too early to start thinking about holiday 2003 (or, if that's too much for you, think about those birthdays that will come during the early months of 2003).

I actually have a present closet. I buy gifts when I find things I like at competitive prices and -- I think my friends already know this -- I often buy them in bulk. Everyone knows you can pick up wrapping paper and holiday cards at a discount of 50% or more at post-holiday sales. But also consider buying "evergreen" fashion items: cashmere crewnecks, scarves, gloves, etc. That strategy also saves you the time of having to run to the store whenever a birthday rolls around. And in this time-is-money era, every minute counts.

Jean Sherman Chatzky is the author of "Talking Money" (Warner Books, $24.95). Additional reporting by Brian B. Reid.