Discounts on popular selling items like computers, toys and clothes have been extended beyond Christmas by various retailers, in the hopes of luring more customers and boosting sales for the year. In particular, store owners are targeting those customers who held out for lower prices and possess gift certificates to redeem.

Beginning online yesterday, Best Buy Co. cut down the price of a Dell Studio 17 inch laptop to $699.99 from $779.99. Also, shoppers at Toys "R" Us Inc., who purchase a Nintendo Wii can pick up a second console at a 50% discount.

Wal-Mart, which started pulling down prices starting September 30, is trying to lure customers by offering a gift card of $50 on purchase of Microsoft's popular gaming console, the Xbox 360 till January 01.

Competition among retailers has been more intense than otherwise during this season, when customers are cautious about the money they spend. "We are going to be very aggressive, we've been aggressive all season", said Toys "R" Us Chief Executive Officer Jerry Storch.

Despite all efforts by retailers and sellers, both online and at outlets, the Washington-based National Retail Federation is sticking to its forecast of a 1% drop in Holiday sales for the current season.