Going into this holiday season at Mt. Lebanon's Empire Music, owner Joe Ravita's anxiety meter was turned up to 11.

"From what you heard, it was supposed to be the end of the world," he said.

But Mr. Ravita was surprised and delighted to tally up his holiday sales and find that they had actually increased about 10 percent over last year. His 6-year-old store generally does about 20 percent of its annual business during the Christmas season, he said.

His guess for how Empire bucked a bad economy: offering knowledgeable customer service and building a loyal customer base through a vibrant schedule of lessons, such as a new "Rock School" program.

As shoppers packed mall parking lots yesterday in search of deep discounts, several local retailers said that they had not felt the pinch -- or the flat-out sucker punch -- that national retailers did.

"We're a little recession-proof because you can't tell the kids they're not getting toys," said Jack Cohen, owner of S.W. Randall Toys and Gifts, standing in the first floor of the store's Downtown location.

"When times are tough, people want to buy quality," added store manager Paul Kaplan. "They don't want to waste their money."

Mr. Kaplan said that S.W. Randall's sales this year were roughly the same as last year, and that board games, puzzles and crafts had sold well -- "toys that get real use," he said.

Nationally, retailers are facing the worst holiday shopping season in decades.

Holiday sales -- which typically account for 30 percent to 50 percent of a retailer's annual total -- have been less than jolly. Job cuts, portfolio losses and other economic woes have led many Americans to cut back on their spending. Meanwhile, strong winter storms kept some would-be shoppers at home.

According to preliminary data from SpendingPulse, which tracks purchases paid for by credit card, checks or cash, retail sales fell between 5.5 percent and 8 percent during the holiday season compared with last year. Excluding auto and gas sales, they fell 2 percent to 4 percent, according to SpendingPulse.

More people did appear to shop online, particularly in the last two weeks of the season, when storms hit. Online sales dipped just 2.3 percent, SpendingPulse said.

A fuller indicator will arrive Jan. 8, when major stores report same-store sales, or sales at locations open at least a year, for December.

Many stores are likely to report a loss for the fourth quarter, said Marshal Cohen, a senior retail analyst with NPD Group, a market research firm.

Stores were hoping that big discounts yesterday could lure people out and help stem those losses. And although some malls appeared to be busy with bargain-hunters and gift-returners, analysts said traffic appeared to be lighter than in years past.

Rollier's hardware store in Mt. Lebanon, which sells everything from jackets to plumbing fixtures, felt some symptoms of the national downturn, said owner Doug Satterfield.

The store prides itself on a large selection of Christmas supplies and ornaments, sales of which were down about 20 percent from last year, he said.

But because most of the dropoff was in lights and outdoor decorations, Mr. Satterfield thinks that the economy wasn't the main factor.

"I think the weather, more than the economy, affected our sales," he said, noting the succession of cold and unpleasant December weekends.

For the first time ever, the store started discounting its Christmas merchandise before Dec. 25, he said, and will continue progressively discounting through the beginning of 2009.

Business in the store's other departments has been strong, he said, with the exception of some of the big-ticket items such as luxury bathroom vanities. "We didn't see the effects like the malls did," he said. "Our customer count wasn't down. I just didn't see people filling their buggies as much as last year."

A couple blocks down Washington Road, the stationery store More Than Words also saw a dropoff in retail sales during the holiday season but more than made up for it with an increase in custom orders, said owner Barb Johnson.

Even yesterday, as customers browsed 50 percent off holiday cards, Ms. Johnson was meeting with a newly engaged couple looking at wedding invitations.

"Everybody's retail sales are down, but there's obviously people who still want something special, and are willing to pay the price for that," she said.

And for longtime Pittsburgh businesses, sales are also a matter of perspective.

"We survived the mills closing," said Mr. Cohen of S.W. Randall, which opened its Squirrel Hill location 38 years ago. "It couldn't be worse than that."

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