The US retail sector is on the brink of a price war as store groups flex their muscles to slash prices.
Electricals have been at the forefront of discounting so far, as last year's key battlegrounds are revisited.
In 2002, retailers fought to undercut competitors' headline prices, which led to Wal-Mart hitting out with DVD players for less than US$40 (£24).
This year, Sears is already advertising a US$36 (£21) Apex DVD, which comes in below Wal-Mart's recently launched Norcent Slim DVD player at US$39.74 (£23.40).
The offer also undercuts Best Buy, which is planning a US$39.99 (£23.50) KLH-DVD player and Circuit City, which has advertised a US$37.99 (£22) AMW-DVD player.
US analysts at Goldman Sachs described the price positions as 'an aggressive seasonal stance' in a research note. According to the note, Circuit City had dropped its DVD prices for the second week running. A 'seasonal acceleration in promotional activity' from Circuit City and Best Buy was predicted as the peak Christmas shopping period draws closer.
Toy retailers have also been keen to draw customers in, with the US$109.99 (£65) list price of one of the season's predicted bestsellers - the Bratz Formal Funk Runway Disco - falling considerably.
Wal-Mart and Target have both reduced the price of the toy by 35 per cent to US$64.88 (£38). The drop will leave the Toys R Us price of $89.99 (£53) looking unattractive.
Despite the discounts, the US National Retail Federation has predicted that this will be a brighter Christmas season for retailers, following October sales growth of 5.8 per cent.
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