RAPAPORT... Consumers in the United States have already changed how they shop due to the recession -- this was evident in very poor retail sales during Christmas season 2007.

Iconoculture, a shopping trends research company, expects this Christmas season 2008 will experience tighter wallets, and that  consumers will trade down and adopt a myriad of ways to save dollars.

Some of the trends Iconoculture's strategists have identified for Christmas season 2008 include:

"Practical gifting" is the leading motivator as consumers begin their holiday shopping. While consumers plan on buying gifts as always, they will hold out for steep discounts.

"Christmas, Part II" could be an added benefit to retailers given that airfares and travel have become so expensive. The group contends consumers may opt to stay home this year, and thus buy gifts for loved ones during the post-Christmas sales.

"Cards That Keep on Giving" continue to be hot,  but there will be changes this year. Squeezed budgets will force more shoppers to opt for lower card values. Gift cards will show up in cool packaging as more consumers look to balance the simple convenience of gift cards with the restoration of gift-giving excitement.

"One for You, One for Me" is the 2008 holiday shopping motto, so don't expect consumers to deny themselves completely. As the year 2008 draws to a close, look for those savvy, but weary, shoppers who pinched pennies and hoarded dollars all year to think about a little indulgence.

"With bountiful sales and discount coupons in tow, smart consumers will use the season to dabble in a bit of personal shopping -- and rationalize it as something they've earned," the group contended.