By JONATHAN FAHEY, AP Business Writer

NEW YORK (AP) - Out of a relatively balmy winter have sprung some economic surprises. People have more cash in their pockets because they aren't turning up the thermostat. Airlines don't have to de-ice planes or battle blizzards. And shoppers are finding great deals on coats and boots.

But there are also disappointments. Merchants are stuck with unsold shovels and snow blowers. Drugstores say customers aren't buying cold medicine or getting as many flu shots.

The weather has been so mild that at some hardware outlets, rakes are flying off the shelf, and grass seed is outselling ice-melting salt.

"I haven't seen this mix of sales since I can remember," said David Ziegler, whose family owns nine Ace Hardware stores in the northwest Chicago area. "They're buying rakes ... just because it's warmer and people are not holed up."

Coats are the biggest headache. They take up a lot of space, and they are expensive, so big markdowns hurt the bottom line more. Stores are discounting coats by 70 percent on average, and many are slashing prices on entire coat departments.

"Stores can't get rid of the outerwear fast enough," said Scott A. Bernhardt, chief operating officer of Planalytics Inc., a research firm that uses weather patterns to advise stores what they should buy to sell to customers.