By Monica Chen

mchen@heraldsun.com; 419-6636

DURHAM -- Local businesses are opting to ramp up holiday sales and promotions in December instead of making a big push with Black Friday, leaving one of the biggest retail days of the year to national retailers.

Instead of trying to compete with doorbusters, rebates and giveaways, small businesses in the Triangle will try to draw traffic with customer service, building on existing relationships with their customers and holiday events.

Nested, a home and gift store in downtown Carrboro, and Morgan Imports, the eclectic store in downtown Durham, both offer free holiday gift wrapping. Nested also provides refreshments for shoppers, and Morgan Imports has already kicked off its holiday season with an annual open house as well as a party to benefit Preservation Durham.

The store, which sells everything from candles and ornaments to Christmas trees and furniture, has also rolled out its life-sized reindeer for the 27th holiday season.

"We just give the best customer service we can, make the store as fabulous as we can," said owner Jacqueline Morgan. "We have sales all the time. We can't compete with Black Friday with the big boxes."

Black Friday is traditionally the day in the year when profit margins for retailers go from the negative red into the positive black, signaling the start of the prime season for holiday shopping. To capitalize on the attention the day captures, retail behemoths like Walmart, Target and the anchor tenants of malls and shopping centers roll out big deals to get shoppers in the door.

Old Navy, for instance, is giving away a free Rock Band guitar to the first 20 customers who show up to the store at 3 a.m. Friday, and J.C. Penney at The Streets at Southpoint is providing free wake-up calls and giving a free Disney snow globe to each customer while quantities last.

The National Retail Federation projects that up to 134 million people will shop this weekend, up from the 128 million people who planned to do so last year. According to a NRF survey, discount and department stores will still be the biggest attractions, with 66.3 percent and 62.4 percent, respectively, planning on dropping by their favorite big box store.

Like big box retailers, small businesses have seen profit margins shrink and traffic slow in this recession. And like them, they have also changed aspects of their business to drive traffic.

At Ox & Rabbit Soda and Sundries, which opened in the summer of 2008, owner Erin Walker-McMullen said they've lowered price points this year.

"I think we're all kind of on our toes, ready all the time, whether it's Black Friday or not," she said. "A lot of business owners are pretty tired, working really hard to please their customers."

At The Hat Lounge at Northgate Mall, a specialty hat store, owner Pablo Alvarez has also lowered price points and put much of his merchandise on sale. The store will also have a live blues band on Friday, starting at noon.

Nested owner Jenny McMillan said some Carrboro stores are trying to organize a "Buy Local" week for Dec. 5-12.

"By the time we get through Thanksgiving, we know we need to be ready and prepared for the holiday season," she said. "But that one day is not the day that's going to make it or break it for us."

"Usually, people that are looking for those big Black Friday days end up cloistered in the malls or strip malls," she added. "It might be smart if downtown businesses are coordinated to do these things, but we are not as coordinated at this point."