As we mentioned in October, the National Retail Federation expects a 3.7-percent increase in sales this holiday season compared to last year. However, a Deloitte survey cited by The Detroit News says that four out of 10 U.S. shoppers plan to spend less this holiday season. The respondents of the survey attributed their spending decrease to higher food and fuel costs, in addition to falling home values. This marks the highest reduction in spending over the holiday months in at least seven years. About 52 percent of those surveyed say they plan on spending the same amount as last year, while 7 percent plan to spend even more. The survey also pointed out that shoppers will spend about the same amount on gifts, but will spend less on themselves and their home. Overall, Deloitte predicts U.S. retail sales will gain about 5 percent over the three months through January as compared with last year.

In addition to concerns over the high cost of milk and gasoline, consumers also voiced concern over the safety of imported products since the recent recalls of lead-tainted toys. In an attempt to lure hesitant consumers, retailers are expected to ramp up promotions even before Black Friday. "This is going to be a very promotional holiday season where the retailers are going to be fighting for that consumer dollar," said Steven Baumgarten, an analyst at PNC Wealth Management.