It's in the Bag!

Millions of white bulbs blink on, and scores of bundled-up spectators cheer the Disney-themed holiday parade the third weekend in November, the start of North Michigan Avenue's Magnificent Mile Lights Festival. That's the official beginning of Chicago's holiday shopping season. But even before the lighting, holiday spirit shines along the Mile, that stretch of Michigan Avenue between the Chicago River and Oak Street. You can feel it the moment the John Hancock Building turns on its crown of red and green lights.

Carols play in stores, giving passersby hints of yuletide melodies every time doors fly open. Horse-drawn carriages roll past designer fashion houses the likes of Burberry and Salvatore Ferragamo, and greenery adorns facades from sleek to historic. Along with five high-rise malls, the Mile boasts grandiose flagship stores, as well as shops not seen anywhere else in the Midwest and, in a few cases, the world. This is the city's ritziest shopping district, and during the holidays, its most spirited.

Street musicians play seasonal tunes outside Water Tower Place, the avenue's original high-rise mall. Inside is the first Midwest location for Lacoste, the preppy outfitter known for its crocodile logo. You'll spot striped sweaters, as well as the brand's signature polo shirts in myriad colors. Sports buffs on a budget appreciate Lacoste's reasonably priced wristbands and cotton visors.

On the mall's second level, two more new stores attract holiday shoppers. Department 56 offers an assortment of giftware, collectibles and holiday decorations, including the popular Original Snow Village Collection and other holiday-themed villages. At the neighboring Misako store, you'll find an ever-changing selection of handbags in patterns inspired by well-known designers, but with more palatable price tags. Nothing costs more than $32, except fine leather bags on the store's exclusive "red wall."

Across the street, lines snake onto the sidewalk from one of the hottest shopping destinations: H&M, a Swedish import lauded for off-the-runway clothing at a fraction of designer prices. The "young trend" section features fun fads such as 80s-inspired ripped T-shirts. Upstairs, more conservative shoppers look for career clothes.

The pace is slower a few blocks south at the new Apple Store North Michigan Avenue. Here, tech-minded shoppers take their time scouring the most recent innovations from Apple and using the new iMacs to browse the iTunes Music Store. The staff is quick to offer counsel, as are the experts behind the Genius Bar at the top of the all-glass staircase, which seems to float above the action.

Several area mainstays are worth a second look. At the Chicago American Girl Place just west of the Mile, showrooms teem with girls, their moms and a few dads. Besides the retail space, there's a theater, doll hair salon and cafe. Little shoppers dressed in holiday finery take their dolls upstairs for tea; the cafe's wait staff is more than happy to pull up mini booster chairs made especially for dolls.

Across the street at the City of Chicago Store in the Historic Water Tower pumping station, home of one of the two Chicago Visitors Centers, you can take a piece of Chicago home with you. This tiny shop deals in salvaged civic memorabilia, including street signs, manhole covers and retired parking meters (the meters go as fast as Chicago parking spaces at about $250 each). The store also stocks more standard gifts such as architecture books and T-shirts.

A few blocks northwest, the Von Dutch boutique, famous for its logo T-shirts, trucker hats and bowling bags, is reportedly popular among celebrities such as Ashton Kutcher and Justin Timberlake. The sole Midwest location draws a young, urban clientele to its garagelike space decorated with painted flames. Be forewarned: The clothing is priced for those who don't mind splurging (tank tops cost upwards of $50). However, you can walk away with a sticker featuring the Von Dutch logo for just a few dollars.

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