MUNCIE -- Hoosier retailers could be in for their worst holiday season in several years, according to a new study.

Ball State University researchers said deep price cuts may lure consumers into stores this holiday retail seasons, but sales will fall nearly 1 percent from last year, 6News' Renee Jameson reported.

The study also predicts that holiday retail sales will be at their lowest levels in five years.

"I anticipate the medium-size department stores and anybody that sells consumer electronics to really have the tough part of the year," said Michael Hicks, director of the school's Center for Economic Research.

Hicks said unemployment is still high, and that consumers are afraid to spend like they have in the past.

"In places like Walmart and Target, they're pretty discounted already. For the big department stores, for them to get anybody into those stores, they're going to have to cut," he said. "We're already seeing the movement of the holiday season into October."

Target is banking on a sales tool they haven't used in years -- price matching.

Muncie store manager Renee Stevens said the stores will now match competitors' prices when customers bring the advertisement into the store.

"It's one great way that we can stay competitive in the retail market," she said.

Muncie shopper Heather Riddle said she hopes her buys will all be bargains.

"I have a 7 year old, and to have to buy Christmas for him," she said. "(I'm) not really sure if I'm going to be able to afford it. So yeah, it's scary."