Merchants, whose potential customers have been glued to depressing financial headlines for weeks, are trying to resuscitate the holiday spirit in a way that lets people feel good about however much they decide to spend.

Kohl's this week made a marketing campaign promise to be "the one-stop destination for shoppers looking to get the most for their money during a challenging economic environment."

Nordstrom sweetened the deal for its credit card holders. "Offering double reward points allows our customers to earn more rewards during these challenging economic times," said Erik Nordstrom, president of stores for the Seattle chain, in a statement.

Sears promised great offers are in the works between now and Christmas, while Kmart is reportedly offering Black Friday-style deals starting this weekend, long before the actual day-after-Thanksgiving that traditionally draws crowds.

If that seems to be pushing the season, it's practically restrained when compared with Wal-Mart's move to cut some toy prices starting back on Oct. 1. The company also hurried to open Christmas shops inside some of its stores.

The big discounter out of Bentonville, Ark., cited research that showed people would start shopping early as they try to stretch their cash and that more than a third of those surveyed would buy gifts for their children first. Last year, Wal-Mart offered 'Black Friday' deals early.

A Toys R Us promotion offering 'doorbusters' last month got the attention of Steven Baumgarten, an analyst with PNC Capital Advisors in Philadelphia. "I thought about going there to pick up some stuff early," he said.

Discounts, early and often, may be the only way to cope with a climate in which consumer confidence has fallen to an all-time low, according to October survey results released this week by the Conference Board. In addition, consumers cut their spending, according to the U.S. Commerce Department.

"As long as you continue to hear the economy's bad and this and this and this, people are going to say, 'I'm going to cut back,' " said Gayle Marco, an associate professor in the marketing department at Robert Morris University.

She's talked to retail workers who report that people coming in just ask what deals are being offered that day. Her own students have started talking about whether buying more stuff is that important.

In that environment, the retailers have to break through somehow. Dr. Marco expects some to offer incentives, perhaps a set of knives for those who buy plates or glassware. Kmart's return to offering layaway services didn't surprise her.

Those who have tied their promotions into credit cards may start running into more resistance, she said. People are afraid to run up more debt and worry that adding cards will affect their credit rating.

In general, Dr. Marco doesn't think the deals are good enough yet. She figures they'll get better as the holiday season progresses and retailers face tighter deadlines.

Mr. Baumgarten said smart merchants will be actively talking about values. "To me, that is what's going to bring people into the stores -- when you really get a bargain. That has to be the message this year."