North Carolina created the tax free weekend seven years ago so that parents could  save on back to school supplies. It became one of those events that retailers in this state began to count on.

With the sagging economy this year, local small business owners are finding the extra business is going a long way.

Shopper Sherry Williams is one of those watching her pennies more carefully now.

 “With the way that gas prices are now, we have to be more mindful of how we're spending our money,” said Williams, a Knightdale teacher.

When consumers cut back, so-called "mom-and-pop" stores are more susceptible to the ills of the economy than big-box stores. That’s because when shoppers start conserving their money, the little guys are less able to weather the situation. That is why independent retailers like Stone's Education Superstore in Raleigh relish the tax free weekend.

“We were packed just after we opened at 9.30 this morning,” said co-owner Carol Madison.

She and her husband say to fight the sagging economy they've tried to make their business a one-stop shopping center.

“Just by stocking everything in one place, we believe customers will come to us and find everything,” said David Madison. “That way, they aren't spending a lot of money driving around trying to find all the different things in different places. They can do it all here.”

That requires they keep a million dollars worth of inventory, which translates to about 35,000 items.

This tax free weekend also found one teacher using it to compensate for the rough economy.

“I'm buying a lot more for my students because a lot of parents can't do it,” explained second grade teacher Linda Seligman “I'm buying pencils, notebooks, dictionaries and that kind of thing,” she said.

Across town, another locally owner store uses a bit of a different philosophy to keep from being affected by economic downtowns.

The ‘Teach Me' store on Raleigh's Falls Of The Neuse Road has weathered the tougher economic times by becoming a niche marketer.

“Our store is unique,” said owner Diane Weisbrodt. “You have to have a certain purpose in here -- general things are not going to work here.”

As a result, she says, she sells more than the traditional school supplies.

“We have  a science section, a history section , a geography section as well as with lots of puzzles and hands-on games,” she said.

The economy is so tough these days that National Retail Federation estimates at least one-fifth of the families buying back-to-school supplies will do so using a portion of their economic stimulus check.

The federation also estimates families will spend about $594 dollars this year on back-to-school items.

TALK BACK TO STEVE ON HIS BLOG AT: http://blogs.wncn.info/betweenthelines