NPD's recently released Annual Holiday Survey also reported that 11 percent of the participants plan to spend more this year, unchanged from last year, while 59 percent plan to spend about the same, down from 2008's 63 percent.

"That 4 percent increase is certainly a sign of the times," says Marshal Cohen, chief industry analyst for NPD. "On the other hand, that 4 percent is not as dramatic as it could have been. I think consumers will be looking for the right gift, rather than the most extravagant or expensive one. That combined with the soft numbers we are up against from holiday last year and I think we will see growth, albeit a modest 0.5 to 1.5 percent."

According to the survey, shoppers are looking to purchase sweaters, fragrances, music, books, movies and wallets as gifts, followed by makeup, TVs and netbooks. Apparel maintained the top spot at 49 percent, unchanged from last year's results. In the 18- to 24-year-old demographic, NPD reported electronics as the strongest gift category. Value was found to be the primary holiday shopping motivator this year at 62 percent, followed by special sale at 61 percent and convenient location at 50 percent.