Check Out the tough love consumers are doling out to retailers.

Not only are they thinking twice about shopping, consumers are also losing faith in gift cards, according to the America’s Research Group/UBS 2008 Christmas survey.

While such cards were among the top gifts for holiday 2007, consumers this year are worried that stores could slip into bankruptcy and leave gift card recipients out in the cold.

Of consumers who will not do their regular gift card buying this year, 64.4 percent said they will gift money instead.

And if you got a gift card last year, don’t be too sure you’re going to see a present coming your way this Christmas. More than a third of the people in the group mentioned above said it’s possible they will give nothing at all.

While 22.8 percent of Americans have already seen job cuts at their workplace, 31.8 percent expect the axe to drop in the future, according to the survey, which polled 1,000 adults aged 20 to 59.

And the thought of their debt load is not giving them a warm, fuzzy feeling either. More than half of those surveyed said they are feeling some pressure from their debt, while 21.8 percent said they felt it bearing down on them.

About 57.9 percent of those pressured by debt are going to spend less this Christmas due to credit concerns.

“Consumers have snapped shut their wallets this year and it’s difficult to find a bright spot for the Christmas shopping season,” said Britt Beemer, chairman of ARG.

But if you are a retailer and come out guns blazing with deep discounts, there is a chance you will snag some sales. Nearly 90 percent of surveyed shoppers said they are swayed at some level by discounts and sales, while 84 percent admitted they are more sales-driven now than three to five years ago.

Also in the basket:

PepsiCo stands by outlook, to outline 2009 plans

Debt protection costs on Macy’s, Limited surge

Wal-Mart in wind energy deal with Duke Energy

Kohl’s to offer wider price cuts for holidays

Barnes & Noble loss more than expected, shares fall

US weekly jobless claims surge to 16-year high

(Photo/Reuters)