Consumers are expected to fling open their purse strings this weekend as the Carolinas launch the annual tax-free holiday, beginning at 12:01 a.m. Friday and ending at 11:59 p.m. Sunday.

Jim Hatchell, president of the S.C. Merchants Association, said if the event brings in even 90 percent of last year's tax-free weekend sales, the boost for retailers will be tremendous.

"Retailing has tried just about every promotion, discount and sale that's ever been concocted," Hatchell said, "and nothing motivates people like not paying sales tax."

The annual event, intended to allow consumers to save tax on back-to-school related purchases, has begun to spawn additional perks as retailers attempt to lure additional traffic.

For the first time this year, even food will be tax-free in some S.C. stores.

Piggly Wiggly supermarkets will not charge sales tax from Friday through Sunday on any items in its stores.

"We decided to give everybody a real tax-free holiday," said Buzzy Newton, president of Piggly Wiggly.

Newton said the tax-free holiday had created some confusion in the past at checkout lines, with consumers buying taxable food items and tax-exempt school supplies.

"This way, everything is tax-free," Newton said. "I hope people will realize this is a good time to buy a couple of weeks' supply of things."

Since South Carolina launched the tax-free holiday in 2000, state officials have been hard-pressed to determine if it has been responsible for spurring sales.

The S.C. Department of Revenue recorded a significant increase in gross sales in August 2000, but sales the next year declined. Sales were up slightly again in August 2002.

Many factors have affected retail sales since 2000, including a slow economy and the events of Sept. 11, 2001, said Danny Brazzell, public affairs director for the S.C. Department of Revenue.

The state lost - and taxpayers saved - about $3 million in sales tax revenue during last year's sales tax holiday.

The annual event has created an excitement about shopping that is second only to Thanksgiving weekend, Hatchell said.

"It's the second-biggest retail weekend of the year," he said. "It's more than saving 5 [percent] or 6 percent sales tax. You can get 20 [percent] and 30 percent off in most places.

"... Across the board, retailers that are not directly impacted realized they've got to get their share of the traffic and promote."

Although neighboring North Carolina launched its own tax-free holiday in 2002, Hatchell does not think Grand Strand sales will be significantly impacted.

"You're more of a destination than anybody else close by," Hatchell said."If somebody is in the middle and can go to Wilmington, [N.C.,] or Myrtle Beach, they're going to come to Myrtle Beach because it's a better deal."

North Carolina has more restrictions built in to its sales tax holiday, Hatchell said.

The state puts a dollar amount on many of its tax-exempt items. Clothes, for instance, cannot cost more than $100 per item to be tax-exempt.

Debra Bramlett, marketing manager of Myrtle Beach Factory Stores, said the timing of the tax-free holiday is perfect.

"It gives us an opportunity to get in front of the folks starting school early, and some of the folks from up North who don't start school until after Labor Day," Bramlett said. "It's a nice little push in August for us."

The outlet mall is offering sidewalk sales this weekend in addition to tax savings on specific items, Bramlett said.

K-Mart and Office Depot are among the local stores that are scheduling additional staff for the weekend.

Additional perks at Office Depot include a teacher discount card and a 5 percent donation to local schools with the purchase of school supplies.

Some shopping venues, including Colonial Mall and Inlet Square Mall, are also extending hours.

"With the [holiday] at the beginning of the month, we get the benefit of some of the surrounding states and tourists that are in the area," said Joe Perl, manager of Inlet Square Mall.

Stores that don't have merchandise items on the tax-free list are offering deep discounts instead, said Sherri Davenport, general manager of Tanger Factory Outlet Center.

"It's good for the locals and also for the people here on vacation," Davenport said. "Right now is still our season, and we need to take advantage of the increased traffic."