Retailers need to hoist their sales.

• Position: Statewide

Last year, to put it bluntly, was lousy for many Tar Heel merchants. Retail sales taxed by the state dropped 8% in the fiscal year ending in June, even though last December--usually the best month for retailers--was better than the one before. The Charlotte region, the state's biggest spender per capita, was hit hard by trouble in the financial industry and suffered the largest decline, 9.2%, while Eastern North Carolina had the smallest downturn, 2.4%. Retailers aren't likely to see an increase in sales this holiday season or fiscal year, says Mark Vitner, senior economist at Wells. Fargo Securities LLC in Charlotte. Many consumers have less money to spend. Unemployment statewide, which last December stood at 8.7%, has stayed near 11% through most of 2009. Even so, many shoppers are hopeful that the worst of the recession is over, and Christmas is almost here. "People are going to find a way to buy gifts. They always do. But overall spending is likely to be down."

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