The Friday after Thanksgiving marks the traditional start of the holiday shopping season and shoppers are already out in full force this morning, taking advantage of expanded hours and deep discounts.

Crowds of shoppers in search of hot deals are scrounging the shelves. That includes the some 2,000 people that lined up outside the Mishawaka Toys ‘R Us before doors opened hoping to get this year’s hottest toy: the Zhu Zhu pet hamster.

Like other retailers, Toys ‘R Us rolled out pre-Thanksgiving discounts, but the big prize remains Black Friday. And this year, with the struggling economy, the competition is unlike any other.

The big question though, that’s expected to give an indication of where things are heading for the country, is whether consumers will spend more or less this year.

According to the National Retail Federation, the majority of consumers are expected to spend less this year and sales will be down 1%.

But, that contrasts the Deloitte Annual Holiday Survey, which finds a more optimistic shopper this year. Of those surveyed, 86% say they plan to spend more than they previously thought.

Either way, the fragile economy has changed how consumers spend, with about 25% of shoppers paying primarily with cash which is up from previous years.

Retailers have also learned their recession lesson: inventory levels are down an estimated 30% from last year. The goal now: grab the attention of shoppers early using traditional printed ads, along with social networking sites and web applications to reach shoppers with exclusive bargains.