As Chattanoogans prepare the table for today’s Thanksgiving dinners, local merchants are getting their stores ready to open in the wee small hours to launch what, for many, is the most critical sales period of the year.

Friday marks the unofficial start of the Christmas shopping season, a period when many jewelry, electronics and other retailers roll up a big chunk of their sales and often earn much of their yearly profits.

Stores are extending hours, expanding “doorbuster” giveaways and adding special sales to get consumers in the holiday shopping mood. Kmart even is staying open today to catch shoppers before the traditional day-after-Thanksgiving sales.

But with unemployment up and the stock market down so far this year, consumers are approaching the holiday season with caution.

“We’re dealing with a changed consumer,” said Pam Goodfellow, senior researcher at Big Research, which surveyed more than 8,000 American consumers last month. “They are smarter shoppers, and they are wiser about their spending and more skeptical about the current economy.”

More consumers are expected to pore over the sales inserts in today’s newspaper looking for bargains.

The National Retail Federation predicts a 2.2 percent increase in holiday shopping this year, the lowest increase since 2002. With uncertainty over jobs and investments, the retail federation predicts fewer shoppers will use plastic to make their purchases this year.

University of Tennessee economist Matt Murray said many retailers are likely to fall short of last year’s sales.

“I’m afraid it’s going to be rather grim and dismal, especially for those selling big-ticket items,” said Dr. Murray, associate director of UT’s Center for Business and Economic Research. “Overall, sales have been weak this year, and there is no reason to expect them to improve much over the holiday season. I think it’s going to be a rather difficult time for most retailers in Tennessee.”

In October, the Tennessee Department of Revenue reported that sales were down by 4.7 percent from a year ago — one of the biggest yearly declines on record, Dr. Murray said.

But there are some signs of hope for retailers, especially in Chattanooga, which has not been as hard hit as many regions by the current recession. Gasoline prices have dropped to their lowest level in five years and, on Tuesday, the U.S. Treasury and the Federal Reserve announced they will provide another $800 billion in loans to help prop up the faltering economy.

Joe Janosko, senior general manager at Northgate Mall, said mall traffic picked up in November and shoppers are getting some great prices from merchants.

“In the midst of these challenging times, gas prices are lower and all retailers are offering some tremendous values,” he said. “We’re looking for a successful Christmas season in spite of what some of the doomsayers may say about the economy.”

Catharine Pangratz, marketing director at Hamilton Place, said she expects thousands of shoppers to arrive before dawn Friday for the traditional post-Thanksgiving shopping spree.

“We anticipate that sales activity may moderate some this year, but we’re still gearing up for a crowd on Friday,” Ms. Pangratz said. “The shoppers looking for sales come out early.”

To sweeten the pot, Hamilton Place is giving gift bags to the first 200 shoppers that come to the mall’s tourist center Friday.

J.C. Penney Co., which is opening its stores at 4 a.m. Friday, will showcase 400 specials, or 20 percent more than a year ago, in the biggest sale of its kind in the company’s history.

KB Toys is opening at midnight tonight to get the first Black Friday shoppers, while rival Toys “R” Us will have 50 percent more of its doorbusters giveaway this year.

Stacia Cry-Shahan, marketing director at Bradley Square Mall in Cleveland, Tenn., said falling prices at the pump should encourage more shoppers to travel again.

“With gas prices being down, I think people are starting to come out of the cocoon they have been in for a while,” she said. “We have a shorter Christmas shopping season this year (between Thanksgiving and Christmas), and I’m hoping people will realize that and decide they need to go shopping this weekend.”

Even in a down economy, merchants say some gifts can’t wait.

“The economy affects discretionary purchases, but you can’t put off an engagement or anniversary,” said Randy Williams, chief operations officer for Markham Jewelry, which operates stores in Knoxville and Chattanooga. “We’re a family-owned business that has been around for 32 years, and we’re optimistic the season is going to be just fine.”

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