Joining the ranks of Tickle-Me Elmo, Cabbage Patch Kids, and the Teenage Mutant Ninja Turtles ... behold, the Zhu Zhu Pets. These robotic rodents are expected to be the most in-demand toy for the 2009 holiday shopping season.

The five battery-operated hamsters respond to touch with 40 different sounds, and can also run around when set in "explore" mode. It's all the fun of having a pet without the messy clean-up duty.

Parents, you have Cepia LLC, a small company in St. Louis, to thank for these critters. The firm is hoping to ship between 4 million and 5 million pets by the end of the year (banking $300 million to $400 million in sales), but admits they cannot keep up with the demand. Cepia has grand plans, however, for the next part of the Zhu Zhu universe, hoping to roll out hedgehogs, rabbits, and other furry robot friends in the next year or so.

If Amazon (AMZN) was comfortable with its spot atop the e-reader market, it just got a wakeup call from Barnes & Noble (BKS). The brick-and-mortar book retailer's e-reader, the Nook, which hasn't even hit stores yet, is in pre-order nirvana right now. The first run for the Nook occurred at the end of October (the product was introduced on October 20). These buyers were told the reader would ship on November 30. High demand resulted in backorders, so the next wave of pre-orders was scheduled to ship on December 7. Now, a third group will have to wait until December 11.

This product is on fire, and it still isn't even on shelves yet.

Mary Ellen Keating, a spokeswoman for Barnes & Noble wouldn't reveal how many of these devices have been pre-ordered, but she did say, "Demand for the product in our stores and online has surpassed our expectations." She also noted, "We are working hard to meet demand for the holidays."

Consumer spending had its largest fall this year, thanks to the end of the "Cash for Clunkers" program. And, incomes were flat. No change to the money coming in and a drop in the cash going out translates to an impediment to economic recovery.

In September, consumer spending fell 0.5%, the first decline in five months and the worst in nine. Wages and salaries dropped 0.2%, effectively offsetting the 0.2% up-tick in August. The economy did grow in the third quarter of 2009, hinting that the worst recession in 70 years may be coming to a close, but the tough September suggests we still have some work in front of us.

The new Neiman Marcus Christmas Book looks a bit different this year. Yes, it's still geared toward the typical Neiman clientele, but it reflects the fact that the usual customers may not be doing as well -- or spending as much -- this year as they did last year. The retailer is facing the fact that it will have to sell lower-priced items this Christmas, because that's what the public will have to buy (even the wealthy corner of the public).

Close to half the gifts listed in the 83rd edition of the Neiman Christmas catalog cost less than $250, and some of them are actually practical (though a bit pricey for most people). In the past, the number of gifts at this price-point would be in the 30% to 40% range.

America's second-largest retailer, Target (NYSE: TGT), announced second-quarter earnings this morning.

The discount retailer saw second-quarter earnings drop 6.4%, which was less than what the Street expected. For the quarter, Target earned 79 cents per share; down three cents from a year earlier but far better than the expected 66 cents per share.

Target was hurt by wary consumers who were less than willing to part with money on apparel and other "nonessential items." Target's CEO attributed the strong results to "very strong operating margin in our retail segment, and credit card segment performance in line with expectations."

Retail giant Kohl's (NYSE: KSS) reported second-quarter earnings this morning, saying they fell 3% due to higher expenses. Despite the drop, KSS managed to top expectations with the latest results.

KSS pulled in 75 cents per share for the quarter, a penny better than what the Street expected. Quarterly sales increased 2% in the quarter, rising to $3.81 billion and beating expectations of $3.79 billion in sales, but unfortunately, same-store sales dropped 2.3%. Looking ahead, KSS forecast full-year earnings of $2.59 to $2.70 per share, up a great deal from its earlier forecast of $2.19 to $2.42 per share. Still, the upper end of the new forecast range is still eight cents shy of the Street's expectations.

With two young children I am reacquainting myself with the holiday cartoon classics. One of my favorites is A Charlie Brown Christmas, where Charlie is ridiculed for the half-dead tree with a few scraggly branches that he picks out a for the holiday production.

We are all living the Charlie Brown Christmas this year, and making due with less. Most people are cutting back on their holiday shopping as they adjust to the slowing economy and higher unemployment.

Frankly, it is a nice change of pace. That said, our reduced spending is, in a sad way, making matters worse.

Companies are retreating en masse, with many reducing or eliminating guidance. It's brutal out there.

The latest victim is video game maker Electronic Arts (NASDAQ: ERTS).

Although there is no must-have buy this season, video games were thought to be attractive for those looking for cheap entertainment. Apparently, that's not the case.

Yesterday, ERTS issued a warning to investors. The company said it now expects to miss already reduced guidance for the fiscal year ending in March. Things have gotten so bad that ERTS is not offering any specifics.

December is a critical month for retailers - the holiday season is the busiest shopping time, and a large chunk of bottom-line profits is booked in the final month of the calendar year. In 2006, December sales accounted for about 15% of all sales for the retailing sector. But December 2007, as many were predicting, may be one of the worst Decembers this decade.

Tomorrow, same-store sales for this critical month will hit the Street and the International Council of Shopping Centers (ICSC) is expecting an overall gain of 1% among stores open at least a year. This is below the ICSC's earlier estimate of 1.5% and compares to a year-ago jump of 3.3%. If this estimate is on the nose, it will be the sector's worst December since 2002.

There are many reasons that the holiday-shopping season was a slow one: rising food and fuel costs, the credit market breakdown, continued housing woes. And because of all these reasons, many retailers were forced to offer sale prices and additional incentives to lure cautious customers into the stores. These discounts obviously pressured the bottom line.

It's easy for me to preach "shop local" from my blogger's perch in Manhattan. While many companies are headquartered here in New York, boutiques, bodegas and mom & pop shops rule this roost. Aside from Starbucks (NASDAQ: SBUX) -- c'mon, they're ubiquitous -- and maybe Rite Aid (NYSE: RAD), I'd have to hike a mile or so to reach the nearest publicly traded business.

But committing my Christmas dollars to local businesses is a tradition I picked up from my ex back in North Carolina, and I think I'm all the better for it -- and all the better served.

For starters, you're far more likely to be wowed with the service from a small shop. At a local business, often you deal directly with the shop owners, who have an undeniable stake in your transaction. Because their equity and livelihood depend upon the repeat business of customers like yourself, you're worth more to the small business owner than the customer queued up at a crowded cash register at Circuit City (NYSE: CC) or Sears (NASDAQ: SHLD), and that value is evident in the transaction.

As some of you have probably already noticed, this year's holiday shopping season has started a little earlier than usual. For those of you who have not noticed the early arrival of the season, don't worry, you aren't blind, you are just proof that retailers have been successful in their attempt to start the holiday shopping without anyone noticing.

Typically, we can at least expect retailers to wait until we get past Halloween to start the hard hitting marketing campaigns, but this year is a bit different. Retailers usually expect strong sales leading up to the holidays, but this year there are economic jitters weighing on the minds of consumers, along with fear related to the massive Chinese toy recalls that we have witnessed this year, and are likely to continue to hear about.

It was what thousands of parents of whiny kids were waiting for. Out of the blue, the Tickle-Me-Elmo floodgates are open and (among others) Wal-Mart Stores, Inc. (NYSE:WMT) makes oodles of TMX Elmo dolls available on the company's web site. From an, umm, "hidden cache." According to Heather, a TMX Elmo searcher in my office, she finally discovered an Elmo available "suddenly" from Fisher Price. Another warehouse abruptly appear out of the fog in El Segundo? (Do they have fog in El Segundo?)


All at once, eBay, Inc. (NASDAQ:EBAY) listings are everywhere, 22,446 results for my search for "TMX Elmo" and not just lots of results but falling prices. When I first checked around 10:45 a.m. there were dozens of listings closing around $5 or $10 over the suggested retail price of $39.99. 20 minutes later, when I was finishing up this piece? It was more like $5 or $10 under the suggested retail price. The Spanish version was going for a ridiculously cheap $26.55. Market floodage has commenced.

When Black Friday was approaching and customers were gearing up for their long wait in line to be one of the few, the proud, the early purchasers of TMX Elmo dolls, a few less festive souls whispered of "artificial shortages" and wondered if Mattel was purposely creating a frenzy over the toys. Most parents and eBay sellers accused them of a distinct lack of holiday spirit, and oh yeah, not enough capitalism.

Looking for toy and game bargains come this Friday, aka Black Friday? You've got it with some of the below choices, with many popular toys -- and even some games -- selling for less than $20 this Friday (and most likely Saturday as well). With the recent launch of the Sony Playstation 3 and the Nintendo Wii gaming consoles, console specials and associated games probably won't be featured heavily (if at all) in Black Friday deals with the launches having happened so recently. So, for less-expensive tastes, how about the below goodies:

Wal-Mart
Candyland Dora the Explorer Edition -- $9
Bratz sleepover doll -- $10
Disney princess director's chair -- $10
Playstation 2 three-game pack assortment -- $10
Cabbage Patch Kids Snuggle Beans assortment -- $10
Hot Wheels 20-car assortment -- $10

Target
Bratz doll -- $10
Cabbage Patch Kids cry and drink baby dolls -- $15
Bratz Babyz bride and groom set -- $15
Barbie mini-kingdom carriage and dolls -- $15
Star Wars transformer -- $15
Yahtzee turbo board game -- $15

Toys R Us
Dave Mirra freestyle BMX (Playstation 2) -- $5
Monster House DVD -- $8
Trivial Pursuit Star Wars Saga edition -- $10
Crayola super coloring kit -- $10
Leapfrog Books rainbow fish book -- $10
Magnetix 100-piece tube game set -- $15

Got gaming on your list? Target will be selling the Nintendo DS Lite for $129.99. Currently, it is listed for $224.99. There will definitely be more high-tech toy specials going round the ads this Friday, so keep your eagle eye out like I know you will. One word -- leave the kids at home with the significant other or a family member for this shopping experience (that goes without saying).

Looking for the perfect gift for the husband, dad, or grown son on your list? My advice: Skip the clothing racks and go straight for the hardware aisles. Another tie, sweater or pair of pajamas reeks of domesticity, comfort and a kind of quiet fading into the sunset. Instead, set his pulse to racing with a gift that shows you think he's a real man, a take-charge kind of guy, king of his castle and all that.

Some high-quality tools should do the trick. And, at these prices -- a leaked Sears circular indicates half-off sales for Craftsman tools -- quality tools are a great investment. How about a new socket wrench set, grip sander or miter saw? BFads.com is showing that you can purchase a DeWalt Heavy Duty Grip Sander for $29.99 with rebate at Ace Hardware.

The trick is to get tools that are so cool that he'll be happy to have them even if he never plans on using them. No home should be without a really nice cordless electric drill, for example. Shop at Big Lots on Black Friday and you can pick up a Stanley 150-piece "Fast Change Drill and Drive System" for $39 (listed on Gotta Deal's Black Friday site). Think of that: You get to give to give speed, drilling and driving -- all in one box!

The Wall Street Journal had a story [subscription required] a month or so ago in which readers complained about the ubiquity of digital cameras, reporting that at weddings, so many of the guests were snapping photos that there were no pictures of people enjoying themselves -- only meta-photos of other cameras. I'm certainly the worst kind of offender; my mom's been known to tell me that it still happened even if I didn't get a picture of it! (My answer: no it didn't!)

Is there a technology backlash? Are consumers deciding to forego the digitalization of every minute of their lives and just frickin' enjoy them for a minute? Ummm, nope. If the leaked sales for Black Friday are any indication, come New Year's Eve, there will be ever more amateurs making high-resolution memories of that New Year's kiss.

I remember it used to be $100 per megapixel, but now you can get massive resolution for a miniature price. But how many megapixels do you (and your gift-ees) need? And can you really get a good 6MP camera for $99? Here are some of the sales we've found for this Friday:

Sears
Polaroid i630 6MP Digital Camera $99
Kodak EasyShare 6.1MP Digital Camera and Printer Dock $329.99
Kodak EasyShare 7.1MP Digital Camera with Printer Dock $244.00 Doorbuster Sale

Wal-Mart
Casio Elixim EX-Z60 Digital Camera $199.88
Kodak Z612 Digital Camera $329.76
Kodak EasyShare C633 Digital Camera and Printer Dock $189.74 Doorbuster Sale

Best Buy
Canon PowerShot 6MP Digital ELPH Camera $219.99
Kodak 5MP Digital Camera $79.99 Doorbuster Sale
Nikon Coolpix 5.1MP Digital Camera $119.99

Why not start small when you're shopping for your holiday gifts? No, not small in storage capacity or features. Just in size and price. To misquote an old adage, storage capacity will double in amount as it halves in price, and it's never seemed more true than in reviewing the leaked ads for this Black Friday. Who has the best deals on tiny and useful peripherals this weekend? According to our sources at BlackFridayAds.com, these are a few of the highlights:

Storage
Polaroid 2GB Secure Digital Memory Card, $29.99 at Circuit City
PNY Attaché 1GB USB 2.0 Flash Drive, $14.99 at Best Buy
PNY 1GB Secure Digital Memory Card, $14.99 at Best Buy
SanDisk 2GB SD Memory Card, $29.99 at Best Buy

Peripherals
HP Deskjet 3940 Color Inkjet, $24.99 at Circuit City
Linksys Wireless-N Wireless Router With 4-Port Switch, $129.99 at Best Buy
Motorola Bluetooth Headset, $14.99 at Best Buy