It's estimated that one-third of sales at shopping malls are offering discounts of 60 percent or more.
Carly Abrams is on a mission -- buy back-to-school clothing for her two daughters and rely on Labor Day sales to save money.
"We were waiting for the weekend," she said. "We found a lot of great deals. We're still not finished."
Savvy shoppers know Labor Day offers even deeper discounts than the day after Thanksgiving's Black Friday. One industry analyst says many retailers slash prices by 60 percent with the average being 48 percent.
San Francisco-based Gap is part of the holiday hype.
"We are all over the radio, we're on Facebook, Twitter, we're just getting the word out about what great savings we have and it's helping," Gap employee Michelle Graves said.
It was a "shop till you drop" kind of day at Westfield Valley Fair, with massage chairs getting their own workout. Bargain hunters were finding deals they can brag about for months to come.
Santa Clara resident Tracey Bootz was pretty pleased with her purchase.
"The sales are great; we just got two dresses at the Gap for $11, which is unheard of," she said.
Marilee Jennings was another satisfied shopper. She found something both she and her husband will enjoy.
"We got the espresso mini for $100 at Williams Sonoma; you couldn't ask for more than that," she said.
The National Retail Federation is already looking forward to a busy holiday shopping season. They expect imports to be up 9 percent going into November and December, often a leading indicator for anticipated sales activity.