With the country officially in a recession, retail experts anticipate Wisconsin residents will save more and spend less this holiday season.
Cynthia Jasper, a UW-Madison professor of consumer science, said consumer confidence will determine the success of this holiday season for retailers.
I think some of it's financial but I think there's an element of it that's psychological too because when you put on the news everyday and '¦ there's so much uncertainty, it doesn't make you feel like going out and spending either,"" she said.
Jerry O'Brien, executive director of Kohl's Department Stores Center for Retailing Excellence, said retailers are worried shoppers will not be spending as much this season due to economic constraints.
He said retailers are offering large discounts to bolster confidence and bring shoppers into stores.
""The biggest problem right now is that consumer confidence is so low, so if anything can help bolster it a little bit then I think it will have a very positive impact on the retail industry,"" he said.
O'Brien said though retail in hard-hit manufacturing communities like Janesville, Wis., will suffer, he expects businesses in Madison to do well.
According to O'Brien, holiday shopping for those with stable jobs will likely not be hindered by the economic climate.
""If you've got a job you feel confident in, it's a great time to buy,"" he said. ""The deals are good.""
UW-Madison senior Emily Erwin-Frank said she is saving this holiday season by making her friends' presents instead of buying them.
""I'm graduating soon and I'm not going into an economy where there's going to be great jobs and I don't know how much I'll be making in grad school,"" she said. ""I really want to save this money that I'm making right now.""
Senior Melina Bast said she expects her family to cut back and she scaled down her Christmas list this year in light of the economic situation.
""I think it's in the back of everyone's mind, where we are economically, and I think it's really affecting the way people are spending their money,"" she said.
