Cheryl Wetherington, owner of Ricetta Artisan Chocolates, 3115 W. Sixth St., prepares a gift basket for a client Thursday at her store. As a business owner and with the economy in poor shape, Wetherington says she is unsure of what to expect for the upcoming holiday season.

Chances are most of us will feel the pinch from the collective squeeze the economy has put on Santa’s belt.

During a time of year that revels in excess, more are scaling back, whether it’s the company Christmas party or items on a gift wish list. Old-fashioned standbys, such as the potluck dinner and the layaway plan, are expected to see a resurgence. And the 21st century version of Christmas shopping — the bestowing of gift cards — is likely to decline.

Joe Flannery, president of Weaver’s Department Store, a Lawrence institution that has experienced more than 150 Christmases, predicts it will be a season of caution.

“It’s still going to be Christmas, it’s not going to be a disastrous Christmas,” he said. “We do think people are going to be more practical. It has been a long time since anyone has experienced a global economic downturn like we are seeing today.”

This week, the Journal-World checked in with local businesses to see how the economic climate could affect shopping, giving and feasting this holiday season.

Early sales

Times are tough for retailers, which for the Christmas shopper can translate into more bargains, if they have the cash.

A combination of a tumbling economy and a Thanksgiving later in November has had some stores posting sales earlier than previous holidays. Among them is Weaver’s, which will offer pre-Thanksgiving sales. Out on Iowa Street, domain of the national chains, some are jumping on early sales. A manager at Target said the store would keep to their traditional “pricing strategies” by kicking off the holidays with “doorbuster” sales on Black Friday, the day after Thanksgiving. Meanwhile, Sears is advertising Black Friday prices on high-end items such as flat-screen TVs and Wii game systems.

Seven weeks before Christmas, Wal-Mart kicked off its Operation Main Street campaign with sales rolling out every week up to the holiday.

“If you could do a cash-only budget, I have a feeling that you are going to get things for only a fraction of what it would have cost you last year,” said Robert Baker, director of education for Housing & Credit Counseling Inc. in Lawrence.

Return of layaway

Another change this holiday season is the return of the layaway plan, in which the store holds an item for the shopper who makes installment payments until it is paid in full.

Nationwide, Sears has adopted one. For Weaver’s, the layaway plan never went out of style. And Flannery said it’s a program that has gotten a little more attention from shoppers this year.

Online is eLayaway, a site that pulls from hundreds of stores around the country and allows consumers to boost their credit scores if they are able to make payments on time.

For Baker, who counsels those with debt, using a layaway plan is an attractive alternative to charging it on a credit card. While credit cards allow you to purchase the gift instantly, it also comes with the risk of high-interest rates if not paid off on time.

“It’s kind of a cost-efficient budgeting plan if you can start early,” Baker said.

Don’t expect to find layaway plans in every store. While T.J. Maxx stores in the Kansas City area have layaway plans, the one in Lawrence doesn’t. Target doesn’t offer it, and Wal-Mart provides the program only in its jewelry department.

“Traditional layaway plans are expensive, and the cost is ultimately factored into the cost of the product,” Wal-Mart spokeswoman Ashley Hardie said.

Gift cards

One of the more popular holiday presents — gift cards — comes with a word of caution.

Recent bankruptcy cases involving Circuit City and Sharper Image have sparked the fear that gift cards can quickly become worthless.

According to Consumers Union, in a bankruptcy case the courts treat unused gift cards the same as any other debt and must determine whether the retailer should pay it back.

Baker, who believes gift cards are still a good way to stay on budget and give someone exactly what they want, said shoppers should use them with discretion. When buying gift cards, he recommends to stay away from stores that could be headed for financial trouble and to read the fine print for reactivation fees and expiration dates.

If you receive a gift card, Baker advises using it quickly.

A present slump

Sure, the holidays are about giving, not receiving, but it might be a good idea to lower the bar when it comes to gift expectations this year.

Cheryl Wetherington, owner of Ricetta Artisan Chocolates, said about 50 percent of the businesses she worked with last year are either not ordering or scaling back on their requests. Wetherington’s business, which also has seen new clients, creates chocolate bars, boxes and baskets used for customer and employee appreciate gifts.

“Everyone seems to be holding their breath and waiting to see what is going to happen before they make the decision to spend,” she said.

Tina Neal, vice president of Coordinated Systems and Supplies, said her customers are looking for gifts that will get used. The Lawrence-based business sells promotional items with business logos on them.

Digital clocks, photo frames, flash drives and fleece items are popular. While sales haven’t gone down, Neal said she has noticed local nonprofits with smaller budgets.

And when it comes to one of the best presents of all — the holiday bonus — chances are it won’t be as big as you’d hope. Baker, the credit counselor, said bonuses started to tail off in 2007.

“I think anyone who has been working steadily this year probably knows they aren’t going to get the same bonus they got last year, if they get one at all,” Baker said. “So plan accordingly and don’t count on that holiday bonus to pay off the Christmas bills.”

The feast

When it comes to the holiday party, most hosts will have plenty of food on the buffet. Just don’t expect to gorge on caviar and lobster.

Local caterers said while the number of clients haven’t dropped off, party hosts are keeping the menu simple.

“We’re not doing the high-scale items as much,” Marisco’s assistant general manager Brandon Jones said. “Instead of the scallops, they’ll do something cheaper.”

As for the feast at home, the holiday staples of ham and turkey should be abundant. Both Checkers Foods and Hy-Vee said businesses and nonprofits haven’t decreased their mass orderings of the meal’s centerpiece.

Baker predicts a return of the potluck dinner, a practice that has everyone pitching in a dish.

The silver lining

All this financial mess does have a potential upside: a switch from holiday materialism to holiday realism could help focus on the true spirit of the season.

In the holiday spending classes Baker has taught, he has come across ideas that do just that. Some companies have employees exchange gifts that are then passed along to Toys for Tots; also, a laid-off single mom and her children decided to use the little money they had for Adopt-A-Family rather than buy presents for themselves.

Catherine Schwoerer, associate professor at Kansas University School of Business, had a student whose company just announced they would do away with the company party and make a sizable donation to a charity instead.

Marciana Vequist, a psychologist at Bert Nash Community Mental Health Center, said a low-budget holiday is a prefect excuse to target the parts of the season that mean the most.

“It can be used as a way to just change from tradition,” she said, “because some people have gotten really out of hand and into trouble because of overspending during the holidays.”