RETAIL MIXED ON HOLIDAY FORECAST: SOME MERCHANTS WARN THAT WEATHER, ENERGY COSTS COULD DAMPEN CONSUMER SPENDING THIS SEASON

"It's been unseasonably warm here," said David Fenwick, owner of Sandy's, a children's shoe store in Austin, Texas. "As a result, traffic has been very slow." To combat slow sales, Fenwick has rolled out promotions earlier than usual and is taking bigger markdowns on some styles.