The stock market has dropped. Foreclosures are up.

Wall Street had to be bailed out by the federal government.

The national economic outlook appears bleak as the Christmas shopping season arrives.

Lawrence-owned retail business owners and managers are hoping they’ve planned well and made the right choices to deal with an economic downturn as they head into what is normally their busiest season of the year.

“We’ve been through this before. That’s one of the advantages of being in business for a long time,” said Earl Reineman, vice president of Weaver’s Department Store, 901 Mass.

“We’re just trying to make sure our prices are fair. It’s going to be a tough time for everyone,” said Kristen Bushouse, sales assistant at Kizer-Cummings Jewelry Store, 833 Mass.

But all retailers interviewed also were optimistic.

“I think we’ll be all right. If I was selling bigger ticket items like cars I’d be more concerned,” said Brian Hoffman, owner of Sports Dome, 1000 Mass.

The most optimistic was John Kiefer, owner of Kief’s Audio/Video Inc., 2429 Iowa.

People are reconsidering specialty stores such as his, Kiefer said. They are finding out that specialty stores are competitive with the big box stores and offer better service when it comes to televisions and sound systems, he said. His business also has a large mail order customer segment. Many of those customers are former Kansas University students with plenty of disposable income and living in larger cities.

“The future high spendable income people who are today’s students are tomorrow’s buyers,” Kiefer said. “We’re one of the few stores that is expanding inventory when everyone else is cutting back.”

During tough economic times department store customers historically focus on fashion at good prices, as opposed to seeking basic commodity goods such as a woman’s turtleneck top or khaki pants, Reineman said. Ties for men tend to be bolder, he said.

“You can offer them something new and exciting; something that will lift their spirits a little bit and most importantly something that they don’t have in their closets,” Reineman said. “But you need to be able to offer it at a good price so that they perceive it to be a good value.”

Christmas also means winter, and people still need outdoor winter wear, said Eric Cloud, lead buyer at Sunflower Outdoor & Bike Shop, 804 Mass.

“We do have products that are very useful in the upcoming season, whether you are going skiing or just need winter weather apparel,” Cloud said.

Sunflower Outdoor tried to “buy smart” in preparing its inventory and take fewer risks with new products while trying to have a mix that meets the local market and weather needs, general manager Paul Davis said.

At Sports Dome, special sales may become more prevalent during the holiday season, Hoffman said. The store’s $20 caps are still popular and some customer may pick them over more expensive jerseys, he said. He also thinks having caps for all pro sports teams and the major colleges, in addition to Kansas University gear, is an advantage.

Much of Sports Dome’s Christmas business occurs close to the holiday, including dads making last-minute Christmas Eve shopping forays, Hoffman said.

Kizer-Cummings will do more advertising and try to offer a broad range of prices while lowering some of those prices, Bushouse said.

“In a money crunch you still want to buy something nice but just maybe not pay quite as much as you normally would,” she said.