BALTIMORE -- Area businesses are closing or consolidating locations because of the economy, and current predictions show a grim outlook for retail sales in Maryland.

Jennifer Franciotti Reports

With the holiday shopping season fast approaching, the Maryland Retailers Association is predicting a zero percent increase in sales. For the past 22 years, the MRA has predicted at least some increase, but not this season.

Sale signs are out everywhere to entice shoppers, but more business are closing their doors, such as Michael Miller Furs in Cockeysville. The company has only been at its York Road location since 1997, but its roots go back to 1898 when the company was started by Michael Miller's grandfather on Charles Street.

Lauman's Home Furnishings is also going out of business. The Perry Hall furniture store opened in 1981 and once employed 80 people, but currently only has about two-dozen workers.

The company's manager said they've seen a steady decline in sales -- as much as 50 percent this year alone.

"Everything has to go," said manager Michell Kamp. "It's very sad. We have a lot of employees that have been here for 10 to 15 years, so it's really hard for all of us."

Lauman's said it has an eight-week plan to get rid of inventory.

"One rep actually told us that every week, he actually loses about two furniture stores. It's actually indicative of what's going on across the country," Kamp said.

As the holidays approach, the MRA predicted only one increase -- the number of deep discounts shoppers will find this season.