It appears American shoppers are spending more this Christmas than even the country's retailers had hoped for.

The National Retail Federation had been predicting a 2.3 percent increase. But now, they think it will be one full point higher.

The hot item this year is jewelry. And the hot way to shop? Online.

"So far we've seen for the season to date online sales were up 13.5 percent from last year. And that's a great number especially considering that retail sales are only growing by about 3 or 4 percent year to year," consumer analyst Kamalesh Rao said.

Retailers are doing all they can to encourage the shopping spirit -- even staying open for extended hours. Toy giant Toys 'R' Us is even staying open 88 consecutive hours beginning at 6 a.m. Tuesday through 10 p.m. on Christmas Eve to accommodate those who want to shop until the very end of the season.

"This is going to be one of the highest volume retails periods in the history of mankind and every day from now until Christmas will be massive," predicted Gerald Storch, chief executive officer of Toys 'R' Us.

What happens during the next several days will make a big difference. Industry analysts say the last 10 days before Christmas can account for a third of all holiday sales.