Gift-givers get creative in tough economy

By Jessica Wohl

CHICAGO (Reuters) - Annette Harris is a self-proclaimed "shopaholic." But after years of giving lavish gifts, she is cutting back since she has been unemployed for more than a year and depleted much of her savings.

Americans are taking a closer look at their spending habits this holiday season as the country is mired in its worst financial crisis since the Great Depression.

"I'm a shopaholic, so it's very difficult. This will probably be the worst time of year for me," said Harris, who used to shop at Saks, Neiman Marcus and Macy's to satisfy cravings for items such as Jimmy Choo shoes.

To keep her spirits up while she looks for a job, Harris has been researching her family genealogy. She is thinking about giving copies of the family tree as Christmas presents this year or may distribute a 10-page poem she began writing on November 4, when Barack Obama was elected U.S. president.

Even those who have not felt the pinch as much as Harris say they are taking a more altruistic approach to the holidays, finding other ways to show their appreciation to loved ones or contributing to less-fortunate strangers.

Theresa Ogden said she would donate more toys and clothing to charities this year.

"I am very fortunate," Ogden said as she walked out of a J.C. Penney store in Racine, Wisconsin. "I'm pitching in to do a bit more in terms of donating to others. I've heard too many bad stories about other people."

Shoppers are still expected to come out and spend, but with more caution. The National Retail Federation expects U.S. holiday sales to increase 2.2 percent to $470.4 billion this year, although consumers spooked by the economic crisis bought sparingly at the start of the holiday shopping season.

Jamal Bullock, an engineer for Lockheed Martin, is nervous about the economy and wants to give different types of gifts this year, like making a collage, having a family dinner or letting someone use his time-share property for a week.

"I want to give more thoughtful gifts than gaudy, pricey gifts," Bullock, 30, said while shopping at a Target store in Maryland on Friday.

STORES COURT MORE DONATIONS

Retailers are getting in on the giving trend too. Borders asked shoppers in its stores if they would like to buy a book for the Toys for Tots charity, while athletic shoe retailer Finish Line sought donations for a charitable foundation.

Shoppers at a Sears store on Chicago's State Street on Saturday could get a cup of hot chocolate if they donated a dollar or more to Heroes at Home, which gives Sears gift cards to military families.

The Salvation Army's red kettles were once again outside several thousand stores, with workers ringing bells to attract shoppers to give spare change for food and toys.

The Salvation Army raised more than $118 million during last year's campaign, when U.S. holiday sales totaled nearly $470 billion, according to the National Retail Federation.