No, don't expect to see windmills and solar panels -- consumers are leaning toward a different kind of green this holiday season: cash. Rather than hit their credit cards, shoppers will only be spending money they have (and can see and touch). Seventy-one percent of consumers are looking to cash and debit cards as their primary form of payment for holiday shopping this year, which the National Retail Foundation pegs as the highest level since 2005.

This could be a problem for the retailers.

Sure, you'd think that the merchant fees on credit cards make cash more attractive to the sellers. But, Ellen Davis, a spokesperson for the NRF, says that most retailers have found they can talk credit card buyers into up-sells more easily. That leads to a bigger basket size and more revenue. Done successfully, it should comfortably absorb the impact of merchant fees. James Roberts, a marketing professor at Baylor University, adds that using plastic makes consumers more likely to buy at all, let alone more.

Retailers may lose a revenue lever to pull this upcoming holiday shopping season ... and it could be a big one. The number of shoppers expected to opt for gift cards rather than traditional purchased goods is likely to increase this year, as nobody wants to waste money on a loser present in a tough financial environment.

Gift cards make that problem go away, but flexibility isn't free. Retailers have tacked on a variety of fees to bring in a bit of extra cash from gift card sales, but if the U.S. Federal Reserve gets its way, these fees will be forced sharply lower.

What's on your Christmas wish list? If the National Retail Federation is right, gift cards are probably holding a respectable place toward the top of the list. These little pieces of plastic are requested most this time of year, and they have the added perk of allowing people to get what they want instead of money wasted on presents that sucks. This trend may give retailers a hand this year, as they'll be able to keep their inventories down.

If shoppers are slow with the cash, retailers won't have to resort to just slashing prices as they had to last year to move product out the door. When the stuff on the shelves is cheap, gift cards aren't as attractive because there's a deal to be had! This year, if inventories are kept down, gift cards are more likely to move.

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.

For retailers, the crucial season is on its way. Blow the Christmas rush, and next year starts off on a miserable foot. Success, of course, also delivers a healthy dose of momentum -- and a little bit of wiggle room, important in what will continue to be a tough economy through at least the first half of next year. For booksellers, now contending with a new variable in the form of digital readers, e-readers will play a major role in defining the winners and losers. So far, it looks like Amazon (NASDAQ: AMZN) is off to a great start, and it will take some genuine innovation for the competition to chip away at its market share.

Barnes & Noble (NYSE: BKS), once the leading names in literary retail, is expected to release its own e-reader this week. It will look a bit like Amazon's Kindle, according to Reuters, but with a touch screen intended to make the reader's experience easier. The price hasn't been disclosed yet, but rumor has it that it'll be higher than the Kindle's $259. BKS is staying mum on its plans in this space. There are others in the space, as well, including IREX Technologies, which is a spinoff of Royal Philips Electronics (NYSE: PHG), Asutek (tk: tk) and a project called FirstPaper that has Hearst behind it.

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.

September is drawing to a close. What does this signify? Well, one of my favorite times of the year, Halloween, will soon be upon us. Even more than that, holiday shopping is about to begin in earnest. Is your portfolio ready?

I've been checking around for investments in the retail sector. Problem is, so many of them have already had significant run-ups. However, even with these higher stock prices, the sector still might be an interesting one to look at since it's possible that Christmas could turn out okay. A post on DailyFinance discusses a report from the International Council of Shopping Centers, which basically states that numbers from this holiday season should see an improvement over last year's data.

Not long ago, I found myself in Sears (NASDAQ: SHLD) buying a video game. While at the point of sale -- which was a nightmare, not because of anything related to the checkout process, but because a jerk cut in front of me and, after the completion of his transaction, proceeded to deluge the poor associate at the register with a bunch of random, techno nerd-talk that said associate clearly couldn't care any less about (but I digress) -- I noticed something pertaining to a Christmas Club card. Sounded interesting, but I didn't pay much attention to the selling material.

Well, last night I was checking out some articles at Brandweek.com, and lo and behold, I came across this one discussing the holiday card. You know how Christmas Clubs work at banks, correct? Same principle applies here. In a simple nutshell, you get the plastic, you store funds on it, and then you can access those funds later on in the season to acquire presents. It's basically like a gift card that you use for budgeting purposes. Not only is Sears involved in this, but so is Kmart. And there's a promotion going on that's mentioned in the article where you can earn a nominal amount of bonus money on it. I don't know the details; I would suggest checking with Sears/Kmart for further information.

Barnes & Noble, Inc. (NYSE: BKS) reported some pretty lousy holiday sales results yesterday, but they were good enough to send the stock up 12%. Ah the glory of low expectations! Overall sales were down 5.2% and comparable store sales fell 7.7%.

That's not so bad given the trouble that retailers and the book industry at large are facing, but the 11.0% decline in BN.com sales is more of a cause for concern.

In the press release, the company added that it had "experienced diminished traffic, and as a result, diminished sales, due to the unprecedented fall-off of retail shopping during the last quarter of the year. After a slow start to the holiday season, our store performance improved and we were able to post comparable store sales increases during the last two weeks of the season, enabling us to meet our sales guidance for the period to date."

But what about the internet sales? Amazon.com, Inc. (NASDAQ: AMZN) reported record sales and according to data gathered by Geezeo's Main Street Spending Index (MSSI), a 17% increase in per customer sales.

Given that the future growth in the bookselling industry seems likely to focus on e-commerce, Barnes & Noble is going to have to do a lot better online.

Luckily, the company seems to recognize that: On the same day it released its holiday results, it named former HSN.com boss William J. Lynch president of Barnes & Noble.com.

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.

Consumers may be strapped for cash this year with Christmas approaching, but if there's one category which analysts expect to do well despite the downturn, it's smart phones. Analysts have called for Apple, Inc.'s (NASDAQ: AAPL) to reduce its price on the 8GB iPhone to $99 (with a two-year AT&T contract), though reports that the company might scale back production point to somewhat depressed demand.

Will Verizon Communications (NYSE: VZ) finally have its iPhone contender; and just in time for the pre-holiday frenzy? Boy Genius Report has received a leaked presentation from Verizon management that indicates the Research in Motion (NASDAQ: RIMM) Blackberry Storm will be released in a "pre-launch special event" on November 20, the Thursday before Thanksgiving. The document indicates the Storm, Verizon's first chance at an iPhone-like device, would be available for testing and pre-ordering at 123 company stores, which would open an hour early for the extravaganza. Actual launch throughout the U.S. would occur on the 24th and 25th, Monday and Tuesday.

The Storm has no physical keyboard, instead using the touch-screen technology similar to the iPhone, a camera, and visual voicemail. Pricing will be $199.99 with a two-year agreement. With Verizon planning to stock plenty of these devices, the iPhone-style frenzy may not exist, but it should be popular for consumers who have been captive to Verizon for one reason or another -- and those whose loyalty lies with the Blackberry. Will this be the holiday season of the touchscreen smart phone? RIMM and Verizon can only put their nightcaps on and dream.

Although the Christmas retail season this year was set up in the media to be a disappointing one, there is still some magic coming from consumers battered by the wacky economic environment in 2007.

As of Christmas Eve, a report from ShopperTrak indicated that sales from the last weekend before Christmas rose more than 18% from the year-ago period, although another report from MasterCard SpendingPulse indicated that a last-minute buying binge from desperate shoppers was not enough to make up for a weak holiday season.

Who ruled the roost -- and lost their shirt -- in retail this holiday season, then?

Target's (NYSE: TGT) didn't measure up, as the second-largest discount retailer in the U.S. said on Christmas Eve that December same-store sales were sitting below its recent guidance. December sales may have even went down 1% from a year earlier. Costco Wholesale's (NASDAQ: COST) CEO indicated that the second-largest wholesale club in the U.S. has "pretty good" holiday sales this year in what is a brilliantly cryptic quote.

When Wal-Mart (NYSE: WMT) sent shock waves into the retail sector three weeks before Thanksgiving with thousands of price cuts in every category, was the retail foreshadowing a week holiday shopping season? Although this week's discount plunge by retailers who needed to make up sales volume before the end of December is already in full swing. It's not entirely clear just how bad retail sales were this season. One hot item that increased over last year was the gift card -- from $18.5 billion in 2005 and $24.8 billion in 2006 to an estimated $26 billion this year. Even that increase, though, won't save retailers from the lowest consumer spending amount in five years.

Santas in Sydney might not be allowed to say "Ho, ho, ho" this holiday season, but Wal-Mart (NYSE: WMT) is making some progress on the sticking-it-to-political-correctness front: it's bringing back Santa.

Two years ago, Wal-Mart shocked the world when it ended its tradition of wishing shoppers a "Merry Christmas" in favor of the increasingly annoying "Happy Holidays." Now, Wal-Mart is shedding its agnosticism in favor of Santa. The chain is bringing Santa Claus back into its stores, and will be offering children free photos with the bearded one.

Bloomberg discusses some of Wal-Mart's other Christmas festivities. The move makes a lot of sense for Wal-Mart. Anyone who is likely to be offended by "Merry Christmas" at Wal-Mart could probably find better things in the stores to be offended by: low wages, poor benefits, lousy working conditions, a slew of discrimination lawsuits, and the strong chance of being attacked in the store's parking lot, just to name a few.

Wal-Mart may be able to pick up some sales from conservative Christians who are resentful of being sold "winter trees" at other stores. The decision to welcome back Santa with open arms is a good one for Wal-Mart and its shareholders.

If you asked the most ultra-left wing, anti-globalization zealot to provide the most egregious example he could imagine of globalization spreading western cultural customs eastward, he probably couldn't do any better than this:

The Home Depot, Inc. (NYSE: HD) is lighting up a giant Christmas tree in the parking lot of its new mall in Beijing.

Home Depot barreled into China in 2006 with its acquisition of Home Way, a Chinese-company modeled after Home Depot -- orange aprons and everything. From a USA Today piece covering this event:

"I have no idea what that tree is doing here. What's Christmas?" asked migrant laborer Yang Kunji.

I wonder what Thomas Friedman would have to say about this. For better for for worse, this a pretty good symbol of the flattening of the earth as globalization reigns supreme.