Ann Freese, owner of High In the Sky Gifts on Lincoln Avenue, said the 2004 holiday shopping season was more profitable than the previous year.

"For us, it went pretty well," she said. "We sold a lot of gift baskets. The economy is picking up."

Because last year's sales were sluggish, Freese was more conservative this year and ordered fewer items, she said. This season, however, brought in more sales than anticipated and left many of her shelves empty. Gift baskets, she said, are her most popular holiday item. The shop also sells knickknacks and other specialty items like jams.

But for Freese, the holiday season does not end when the Christmas stockings come down from the mantle. Her store is busy until New Year's, she said. And the entrepreneur believes the economy is beginning to turn around after a few down years.

"For the last three years, it was on the decline," Freese said. "Hopefully, we're on the rise."

Laura Swenson, the general manager of Alta on Lincoln Avenue, also detected a rise in sales in this year—but not much. She said the store, which sells clothing and accessories, fared well during the 2003 holiday season, but did better in 2004 with an increase of around 5 percent in sales.

Swenson said Alta distinguishes itself from major retail chains by offering customers "the little things," like gift wrapping and friendly service. She said many of the store's clients are returning customers.

Rosa Mendoza, who owns Twins Children's Boutique, located at 1115 Lincoln Ave., said her first Christmas season in downtown Willow Glen was slightly less lucrative than she expected it to be. But Mendoza, who opened the children's clothing and toy store only four months ago, attributed her shortfall to the newness of her business.

"It was a little late for us to get a lot of merchandise," she said. "We didn't have so many things."

Although business was relatively slow, Mendoza said toys were her best selling item. Others like Lincoln Avenue business owners Dean Sales and Barbara Setter of Cooking, Etc. said the holiday shopping season began slowly for them.

"But we finished with a bang," Sales said. He added that sales remained the same as last year.

Both Sales and Setter said they have detected a decline in sales over the past few years, but Setter attributes it to the lagging economy and the boom in Internet sales of cookware and specialty food store items.

However, Setter added that several customers have complained to her about their purchases through the web. Their disappointment means more profit for her business, she noted.

"They come flying in here, and say they didn't get what they wanted," Setter said. "That puts the last-minute crunch on us." But it's a problem the merchants are happy to have.

Setter and Sales said small businesses such as theirs are vying with malls and corporations for consumers' attention. But many of their customers appreciate the fact that their business is removed from the hustle and bustle of the mall scene.

"We always hear people say they prefer to stay away from malls," Setter said.

"That's our most common comment," Sales added. "Many people come to Lincoln Avenue to avoid malls."

Signed and Sealed owner Greg West said he also hears many customers saying that they prefer shopping in downtown Willow Glen to avoid the crowded malls.

"I think Willow Glen residents support local businesses," he said.

This shopping season, which was West's second as the owner of the stationary store, was about 20 percent more profitable than last year, he said. He attributed the increase in sales to a larger and more diverse mix of merchandise.

Willow Glen Business and Professional Association Vice President Don Skipwith agreed with West's assessment and also believes many shoppers choose downtown Willow Glen over the busy malls.

"Willow Glen is a place where people can avoid huge crowds and difficult parking situations," he said. "There is a more relaxed atmosphere."