Video: Retail wars: Stores ready to compete for holiday spending

>>> nearly half of all holiday shoppers will make an online purchase this year. that poses a bit of a challenge for the traditional brick-and-mortar merchants. many big name retailers are upping the ante to ensure in-store traffic.

>> reporter: trick or treat , smell my feet, give me something good to -- shop for? forget the candy and costumes. it's beginning to look a lot like christmas

>> reporter: the season of giving is already here. yes, in october. brick-and-mortar retailers and their online competitors have their game plans set and are ready to lure you in right now. where are you going to do your holiday shopping, in a store or online ?

>> both.

>> in stores.

>> reporter: why?

>> because i like to look at the selection.

>> most of us look online .

>> consumers are a little bit more optimistic than a year ago. much more optimistic than a few years ago. we believe that online will continue to post double digit growth year over year.

>> reporter: for web giants like amazon.com with less overhead than the traditional retailers, low prices and free shipping keep the buyers at home shopping for gifts. another challenge for retailers, something called showrooming, where a customer will come into a store, see a physical item like this helicopter to see if it works, and then go online and buy it somewhere maybe a little bit cheaper. the good news for you to, combat showrooming, retailers like best buy , target, and walmart will all price match select online competitors this holiday season .

>> you've got someone in store. you don't want them to walk away and lose the sale.

>> places like macy's are taking another approach. just take a look at the classic " miracle on 34th street ."

>> the only important thing is to make the children happy, whether macy's or somebody else sells toy, doesn't make any difference.

>> reporter: so they're teaming up with somebody else.

>> we're offering hot toy rez er reservati reservation.

>> reporter: the top three tact tactics, combining social media and smart phones , exclusive brands, and exclusive events and activities only offered in the store. activities that will no doubt put the happy in the holidays for many consumers.

Source: http://video.today.msnbc.msn.com/today/49578990/

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