WASHINGTON (AP) — LaTonya Story is every retailer's worst fear.

With the viral pandemic re-surging through the country and the economy under threat, Story has decided to slash her holiday shopping budget. She'll spend less than $2,000 this season, down from several thousand dollars in 2019. Worried about entering stores, she's buying gifts online and going out only for groceries.

"I want to be conservative," said Story, a 47-year-old Atlanta resident. "I'm not a scientist, but the best precaution is to stay in place."

The acceleration of coronavirus cases is causing an existential crisis for A...