Holiday shoppers will spend 3.7 percent more this year than they had planned to in 2006, according to an annual survey by the National Retail Federation.

The findings are in line with the group's forecast that holiday sales will increase 4 percent, the slowest pace in five years, to $474.5 billion, the NRF said Tuesday in a statement.

Consumers plan to spend $923 on average on holiday-related shopping, the Washington-based trade group said.

Department stores have promoted and discounted more items to lure consumers facing higher gasoline prices and the worst housing slump in 16 years. Wal-Mart Stores Inc., the world's largest retailer, lowered prices on some toys this month, two weeks earlier than in 2006.

"Many retailers will be competing on price, causing this holiday season to be very promotional," NRF President and Chief Executive Officer Tracy Mullin said in a statement.

More than 68 percent of the respondents to the NRF's Holiday Consumer Intentions and Actions Survey plan to shop at discount stores, the group said. About two-thirds of consumers plan to shop at department stores.

The survey polled 7,837 consumers and has a margin of error of plus or minus 1 percent, the NRF said.