With seven shopping days until Christmas, desperation selling has set in.
Retailers posted grim results in the second week of December, leaving them biting their nails and hoping consumers come rushing through the doors to make last-minute purchases in the final week before Christmas, two reports showed Tuesday.
U.S. chain store sales slipped 0.5% during the week ended Dec. 15, the third straight week of declines, the Bank of Tokyo-Mitsubishi and UBS Warburg reported in their weekly chain store sales snapshot. 
Separately, the Redbook retail sales average tumbled 4.6% in the two weeks ended Dec. 15, compared with the same period in November.
Early sales got people into stores, but shoppers are sticking to their budgets. Now, retailers are trying for a big finish with discounts on the discounts, marathon hours and for e-tailers guaranteed Christmas delivery.
"It's panic time for a lot of them, and it's unfortunate," says Carl Steidtmann, chief economist at Deloitte & Touche. The consultancy released its latest holiday shopping survey Monday. The poll of shoppers, taken Dec. 7-13, found that 80% still plan to stay in their budgets (an estimated average of $800), the same as before Thanksgiving.
Thus, the final stretch of the shopping season will be uphill for retailers who have battled the economy, layoffs and warm weather as much as one another. "It's been a little too much for them to overcome," Steidtmann says. "For apparel retailers, there's not much they can do to save the season."
Earlier, retailers had hoped the big price cuts would make up in volume what they cost in margin.

Unable to close the Gap. Gap started the holiday season with same-store sales down 25% for November vs. a year ago. Now, it's trying to clear inventory with up to 60% off. It has cut prices on about 543 items, triple the number of items discounted last year.
Coupons by the hour. Macy's begins four-hour specials today and Wednesday. Procrastinators also can use extra 15% discount coupons at Macy's and rival Lord & Taylor Tuesday and Wednesday.
Moonlight specials. From Thursday at 6 a.m. through Christmas Eve, Kmart stores will be open 110 consecutive hours. At its Web site, a marked product ordered by noon ET Friday will arrive by Dec. 25 or the gift is free (up to $100).
Deloitte & Touche says 50% of women had at least 75% of their shopping done by Dec. 14, vs. 40% of men. "As the shopping season winds down, retailers' best bet could be to target the male shoppers," says Tara Weiner of Deloitte & Touche.
And there's still Christmas Eve. The International Council on Shopping Centers says the extra day after the weekend could account for 5% of holiday sales.