I thought this was probably the culprit, consumers expect bargains at Christmas. It's not that the retailers won't sell, it's their profits that take the hit. Same results, but different cause, the retailers did it to themselves:

http://www.forbes.com/markets/2007/1...markets44.html

Discounting Christmas
Tom Van Riper, 11.08.07, 7:21 PM ET


Retailers can go ahead and blame a lackluster October on the warm weather — that doesn't soften the fact that the holiday season is shaping up to be the worst in five years.

More longtime industry consultants are predicting lower holiday sales growth than the 4% projected by the National Retail Federation. First Loeb & Associates President Walter Loeb, citing a gradual buildup in inventories, forecast a 3% to 3.5% season. Now industry guru Britt Beemer, head of consumer behavior consultant America's Research Group, is even dourer. He thinks growth will come in at 2% or below.

Why? Bigger Christmas discounts than ever. Nearly half the consumers his company recently polled said they would wait for stores to come out with 50%-off sales before buying...