It appears many Yukoners have opted to be thriftier for the 2008 Christmas season.

That's the word from Whitehorse Chamber of Commerce president Rick Karp.

"It's been a challenge," he said of the festive shopping season.

In 2007, stores around the city saw record sales. And while this year there's been no drop in the number of shoppers, retailers are telling the chamber those same buyers are spending less.

Last year, a store that saw 10 people come in at once spending $1,000, is still seeing 10 people come in, but they're keeping their purchases within the $500 range, Karp said.

"People are buying cheaper," he said.

In December 2007, retail sales in the territory totalled $47.1 million, representing a 9.9-per-cent jump from December 2006, when Yukoners spent $42.8 million at local retailers.

If the most recent numbers provided by the Yukon Bureau of Statistics are any indication, where there is growth in retail sales, it won't be as high as merchants have seen in the past few years.

Retail sales in the Yukon in October, the same month of significant plummets in the stock market, were up 5.6 per cent over the previous year at $44.8 million.

However, in 2007, October's retail sales were 14.1 per cent higher than in the same month in 2006, with Yukoners spending $42.4 million.

As Karp pointed out, a number of factors have contributed to the more conservative spending habits this holiday season, not the least of which is the downturn in the economy.

Although fuel prices are falling, it was just months ago that Yukoners were learning to spend more conservatively as they struggled with steep price increases in gas and home heating fuel.

Since then, the global recession has hit, and while few jobs in the territory have been directly impacted, Yukoners are feeling the effect on their RRSPs, RESPs and the value of their homes, he said.

"It's hitting us, no question," Karp said, pointing out that news from the negative economic situation Outside also leads to less spending locally.

"There's a hesitation," Karp said of Yukoners making large purchases.

It's also important to keep in mind too that Christmas falls on a Thursday, leaving three weekdays along with last weekend to finish up shopping, he said.

"You can't tell (what Christmas sales will be) until it's over," said John Russell, Coffee, Tea & Spice's long-time proprietor.

While sales at his Qwanlin Mall store are "in the ball park" for this time of year, he was expecting many shoppers to drop by through the early part of this week to purchase things like pots and pans, which are among the more popular items at the store.

At Erik's Audiotronic, manager Mike Pemberton has focused on making sure staff are providing the best customer service they can while also offering the best price he can on the merchandise.

Still, it's evident Yukoners are being more cautious with their Christmas budgets.

"They're not lined up at the door," Pemberton said.

Among the more popular items are Sony brand camcorders and digital cameras, with Sony already selling out of its merchandise to shops like Erik's.

"That's a good sign," he said.

Televisions continue to be popular items this year, with newer models offering additional features like a built-in content screen that features art, recipes and games.

The changing technology of cell phones also continues to make them a popular buy for Christmas.

"The product just gets stronger every year," he said.

While some customers buy those high-tech toys as gifts for others, Pemberton said he's heard many in the store who are watching their wallets talk about waiting until Boxing Day to make those big purchases.

That's left Pemberton suspecting that though Christmas sales may be slower, Boxing Day could break records.

Other stores in the city, meanwhile, are well-positioned to benefit from more conservative spending.

As Natalie Sumner, manager of Mac's Fireweed Books, pointed out, a new snowmobile may be out of the question for many this Christmas season, but books are fairly affordable.

"It's looking good," she said.

With this being her first Christmas season as the store's manager, though, she admits it's hard to compare this year's sales with previous years.

Also on Main Street are the Hougen Centre shops such as Board Stiff, Sportslife and Coast Mountain Sports, where winter clothes and footwear are selling well this season at all the stores.

Today's long-awaited re-opening of the Mount Sima ski and snowboard area, which closed after only a few days of operating last January due to equipment failures and financial problems, has also meant skis and snowboard sales for the stores, said Craig Hougen of the Hougen group.

Hougen also sits on the board of the Great Northern Ski Society, which operates the ski hill.

Moving Coast Mountain Sports into the ground floor level of the former Taku Hotel/Bonanza Inn has proved positive for the shop, with more room for gear and a better shopping experience for customers.

While it may not translate directly into sales, Hougen said, many of the shop's long-time customers appreciate that a 1950s-era building was renovated and built to LEED environmental standards rather than simply tearing down the landmark hotel and building completely new premises.

The renovations also saw a return to connecting the shops on the lower level so shoppers can move between Coast Mountain, Sportslife and Board Stiff without having to go out in the cold.

"People are definitely liking that," he said. "Customers want ease of shopping."

As the final week of the Christmas shopping season gets underway, Karp is encouraging Yukoners to shop locally rather than spend their dollars on-line.

In his own experience, pricing at local stores is competitive to what a shopper pays on-line for the same product, he said. Paying in American dollars and shipping costs also drive up the price of buying Outside.

By shopping locally, Karp said, funds end up back in the community, with many shops sponsoring local sports teams, events and so on.