At Westfield Garden State Plaza in Paramus last weekend, Karen Sultan was looking for back-to-school bargains.

"I'm definitely buying less this year because everything is so expensive," said Sultan, a Rockville, Md., mother of three who was shopping with her mother, Ruth Swinney of Leonia.

She's not the only shopper who feels that way. Surveys by various retail watchers are reporting large segments of the shopping population are planning to reduce spending this year due to high gas prices and economic uncertainty.

A survey by consulting firm Deloitte LLP found that 71 percent of shoppers said they plan to spend less for back-to-school items this year. Among those surveyed, 48 percent said they will cut their back- to-school spending by more than $100.

Purchases during the July-through-September back-to-school season may grow at the slowest pace since 2001, rising 1 percent to $38.5 billion, according to the International Council of Shopping Centers in New York.

Another factor hitting consumers' wallets is inflation in China, where a quarter of all the clothes sold in the U.S. are made. China's producer price index surged 8.8 percent in June, the biggest increase since at least 1999.

Retailers are responding to pessimistic spending predictions by ramping up the competition for America's back-to-school dollars. Staples is trying to lure cash-strapped shoppers with 5-cent notebooks and free two-pocket folders. Office Depot is selling rulers and pencil boxes for a penny. J.C. Penney and Kohl's began marking down back-to-school merchandise in July.

"There's going to be very few winners when it's done," said C. Britt Beemer, chairman of America's Research Group, who is predicting back-to-school sales will fall by 1.5 percent to 2 percent this year compared with 2007. "I think retailers are going to have to mark down early to get the shoppers they want in the door."

Major revenue source

Back-to-school shopping is the second-largest revenue producer for the nation's retailers, after Christmas shopping. Weak back-to- school spending usually is a warning sign Christmas results will be less than merry for merchants.

The back-to-school shopping season is a key time of year for a number of New Jersey-based retailers who count on school-related sales to boost their bottom line.

Clifton-based Linens 'n Things, in particular, has a lot riding on its August sales results. The housewares retailer, which filed for bankruptcy protection in May, needs to draw lots of college students and their parents to its stores this month. Linens has always invested heavily in winning back-to-college sales, stocking its stores with merchandise such as sheets, comforters and dorm- room accessories. This year, the stakes are higher. Linens needs to generate cash flow and convince lenders and vendors it still is a viable retailer as it prepares to close 177 of its 589 stores.

Linens' top rival for back-to-college sales is its New Jersey neighbor, Bed Bath & Beyond Inc., the country's largest specialty housewares retailer. Bed Bath in recent years has had to fight off competition from Wal-Mart and Target, both of which have expanded their home departments.

The Children's Place Retail Stores Inc. in Secaucus is banking on a mix of prints, patterns and subtle plaids, as well as a heavy investment in fall's hot color, gray, to fuel its fall sales.

"We feel very strongly about the color gray," said A.K. LaMonica, senior director of apparel for the 903-store chain. "From a trend perspective, it was so obvious and in your face it was almost our duty to go with it," she said.