Check out discounting being key to determining who the retail winners and losers of the 2007 holiday shopping season are.

Consumers were hungrier than ever for discounts this year as they grappled with rising food and fuel costs, the U.S. housing meltdown, and worries about whether the American economy is careening towards a recession, a survey from consumer marketing firm America’s Research Group showed.

“I have never seen consumers more cautious, more bargain driven, more savings obsessed than I have this year,” Britt Beemer, founder and chairman of American Research Group, told Reuters.

Aggressive discounting paid off for the season’s star performers — Costco Wholesale Corp, J.C. Penney Co Inc, Wal-Mart Stores Inc, and Barnes & Noble Inc, according to the survey.

Retailers who failed to discount effectively — Macy’s Inc, Circuit City Stores Inc, Borders Group Inc and Dillards Inc — were the season’s worst performers.

American shoppers went out “and bought every deal they could,” Beemer said.

“When there were no deals, there weren’t many buyers.”

Also in the basket: 

The cooling economy is hurting Target’s holidays (New York Times)

Obama retreats from call for China toy-import ban (Reuters)

Holiday spending may defy gloom of consumer polls (WSJ, subscription required)

UK shoppers race to stores for last Christmas buys (Reuters)

Santa is packing more sofas and less jewelry (New York Times)