Pleasantly surprised, but still cautious, is how some owners of mom and pop stores in the South Hills are rating this holiday shopping season so far.

Some local business owners who traditionally have brisk sales breathed a sigh of relief Friday, Black Friday, the traditional start of the holiday shopping season, because foot traffic was higher than expected.

A 20-percent-off sale lured customers to Tutto Bella, a florist and gift shop in the Galleria in Mt. Lebanon, said owner Marty Juliano, of Baldwin Township.

Many customers said they would continue to patronize their favorite stores this year, but would buy fewer items, Ms. Juliano said.

While sales are "pleasantly surprising," she said that she is uncertain what the rest of December will bring.

"I am still cautious," Ms. Juliano said.

If her business needs an additional shot in the arm, she said, she might offer a wine and cheese party and a second holiday sale.

Ms. Juliano has not yet compared current holiday sales with last year's.

The business woman was one of several business owners South interviewed last week ["Holiday worries local merchants" Nov. 26] to monitor how they will cope with the lean economy. We checked back this week.

Despite Ms. Juliano's optimism, many Black Friday shoppers were drawn to big sales at large department stores, which poses a challenge to specialty retailers, said Doug Fleener, the author of "The Profitable Retailer: 56 surprisingly simple and effective lessons to boost your sales and profit."

Specialty stores need to find a way to compete, he said.

According to a survey published by the National Retail Federation on its Web site, a majority, 54.7 percent, of shoppers visited discount stores for holiday deals on Black Friday and the following weekend, while only about one third, 38.7 percent, of shoppers visited specialty stores, like clothing or electronic stores.

The statistics represent a decrease in consumers visiting specialty stores, which was closer to 43 percent last year, said Mr. Fleener, the president of Dynamic Experiences Group, a retail consulting company based near Boston.

Mr. Fleener analyzes the Federation's statistics every year for his over 2,000 retail clients. His company also sends out newsletters and surveys to study retail trends in the nation.

To compete with deep discounts offered by national chains and to increase foot traffic, local businesses are holding sales and hosting special events, Mr. Fleener said.

"We're seeing the most successful local retailers increasing the number of customer events they do this holiday," he said.

While Williams Stained Glass Studio, located at 1115 Castle Shannon Blvd. was closed Friday and Saturday, orders were higher than expected the week after Thanksgiving, said owner Linda Williams, of Brentwood.

Her family-owned business sketches stained glass designs and quotes the cost of producing the designs, and then waits for customers to give the go-ahead to make the piece.

"We received orders from people we never thought we'd hear from," Ms. Williams said.

The business' largest customers these days, she said, are churches, which typically constitute about half of the company's business. Orders for church windows should keep the business busy through the winter and spring, Ms. Williams said. Private individuals and commercial businesses like restaurants are ordering less this year, she said.

Despite orders exceeding her expectations, the total dollar amount of sales is down this year over last, Ms. Williams said, which she attributes to the down economy.

The worst, she fears, is yet to come. "This may be a transition period," she said. "People are still watching. Things haven't settled in yet."

Sandra Castro, the owner of J.J. Gillespie, an art gallery located at 2871 Washington Road in Peters, is holding a charity event in her store this weekend to attract customers to her gallery.

Tomorrow and Saturday the gallery will host local artist Robert Daley, who will paint Pittsburgh scenes live in the gallery.

The gallery will serve cheese and desserts, and a painting by Mr. Daley, depicting the fountain at the Point, will be raffled off for $10 a ticket. Proceeds will be donated to the Susan G. Komen Foundation, to benefit research for breast cancer. The gallery has already raised about $1,000 through advanced raffle ticket sales.

Her business cannot afford to saturate the television and radio with advertisements like big chain stores do in November, she said, she so relies on less direct methods of spreading the word about her business.

"We're not a coupon business," Ms. Castro said. "My business may be suffering, but I can still feel really good about what we're doing."

Her store sells original fine art paintings and does framing and restoration. She also sells specialty gift items.

Fundraisers are popular this year among small businesses, Mr. Fleener said. Other small businesses are donating a percentage of proceeds to local charities to attract customers to their shops, he said.

Other businesses are already looking to 2009 and hoping it's going to be brighter.

Anne's Flower Shop, 1015 Duquesne Blvd. in Duquesne, is providing flowers for fewer holiday parties this year over last, said shop owner Sandy Cielieska, of McKeesport.

With businesses either disappearing or cutting back, she said, orders for holiday centerpieces are down. Two businesses that usually keep her busy in December did not order any flowers this year, she said.

"It's hard for us," Ms. Cielieska said.

Sales earlier this year were strong, she said, but sales have taken a "nosedive" in October and November. Sales are down about 25 percent in these months, she said. She attributes the decline as an aftershock of the turmoil seen on Wall Street.

"It's not going to be a good holiday," she said. She is focusing on 2009, when she plans to increase her advertising and create a presence on the Internet. "We have to concentrate on how to get people in here every day, not just for the special occasion."

Long-standing businesses may be able to rely on customer loyalty and reputation to weather the economy.

"Strong retailers are likely going to do okay this holiday season," Mr. Fleener said. Businesses with cash reserves and a strong customer base have an advantage over newer, less stable businesses, he said. "

For the past 24 years, Jan Jones, of Upper St. Clair, has operated A Basket of Pittsburgh, an Upper St. Clair business that sells baskets full of Pittsburgh-related items.

Ms. Jones offered a 10 percent discount the week of Thanksgiving to increase sales, she said.

Companies are ordering less expensive or fewer gift baskets, she said, but the orders are still coming in.

Sales are slower than in years past, Ms. Jones said, but she does not expect to see a drastic drop in holiday businesses. Being a long-standing business with loyal customers may help the business survive where others may struggle, she said.

"We have people who have ordered from us for over 20 years," she said. "People know our name. That really helps."