Wonderful stories start here, and they started earlier in 2025!
Our team of retail experts, Chris Beley, Kyle Falbee, and Cynthia Ward, set out in New York City again this year to see what holiday shopping trends are holding and which are developing. And what they found is that the Holiday Retail Story in 2025 started earlier than ever, with most retailers launching holiday campaigns as early as September. Our team saw Retailers like Target and Amazon unofficially starting the season by pulling demand ahead of Black Friday, but one Retailer’s flagship store has done it all. Who is that Retailer…? Macy’s of course! At their flagship store in NYC, the 2025 Holiday retail season was in full swing, even two full weeks prior to Thanksgiving.
Their 2025 Holiday campaign, “Wonderful Stories Start Here”, promises exactly what it delivers: a sensory experience to kick-off Holiday Shopping filled with nostalgia, value, and true omnichannel engagement. With QR codes to build gift wish lists, elves to greet customers at the entrance, and a Holiday Square market brought-to-life on their lower level, the immersive shopper experience Macy’s has worked to create is captivating. You could easily spend 8 hours in their NYC flagship store exploring the Christmas market or the scented-Balsam Hill Holiday Lane on the 9th floor, having your presents professionally gift wrapped at Papyrus’s in-store store, dining or snacking with the kids at any of their in-store restaurants, or just playing around on the life-size floor piano and Pac-Man anniversary display console at Toys R Us.
Macy’s isn’t the only Retailer making use of emotional storytelling this holiday season. Walmart is using the nostalgic power of the early 2000’s ‘How the Grinch Stole Christmas’ in their 2025 “WhoKnewVille” campaign. Set in WhoKnewVille, strikingly similar to the Whoville we remember from the movie, they’ve developed a story where Christmas chaos is running the town and their version of Cindy Lou Who is once again searching for a holiday savior. The ad copy reads like a Dr. Seuss book as well with lines like, “Walmart has it all, who guessed it? Who knew?”
Other brands are tapping into the biggest trend of 2025 though for their marketing. Coca-Cola has foregone their typically traditional ad approach to instead refresh their holiday messaging with AI-infused CGI in their “Refresh Your Holidays” spot featuring their iconic trucks against a digital backdrop — sparking debate over tech vs. emotional appeal. And the online retail giant, Amazon, has introduced Rufus, an AI tool that boosts purchase rates by 60% through tailored recommendations. While Kohls brings in a gamification angle with its “Holiday Quest”, adding some fun and prize-driven layers to your shopping experience.
Overall, though, Macy’s has it on lock. They’ve managed to incorporate a full omnichannel strategy into their 2025 Holiday Campaign, with digital & AI shopper assistance, immersive experiences, true value propositions, interactive social strategy, and full holiday decorations. We expect they’ll continue to reign supreme as the place where wonderful holidays start.
Below, we’ve written a more detailed outline of the specific trends and key differentiators that we’re seeing among major retailers. Keep reading to discover what we’ve found…
Key retail Holiday trends for 2025:
1. Extended & Fragmented Shopping Window
2. Value First: Budget-Conscious Shoppers
3. Health-Conscious Displays & Private Labels
4. Omnichannel Shopping Journeys
5. Early Engagement via In‑Store Experiences
6. Emotional Storytelling with Nostalgia & AI
And here’s a Side-By-Side Comparison of what Amazon, Walmart, Target, and Kohl’s are doing for Holiday 2025:
Amazon
- Extended Black Friday Week: Runs Nov 20–Dec 1, with up to 50% off devices and curated deals for small businesses. [ainvest.com]
- AI-Powered Personalization: Uses Rufus, an AI tool that boosts purchase rates by 60% through tailored recommendations. [ainvest.com]
- Prime Ecosystem Integration: Free sports streaming on Prime Video during Black Friday to attract non-Prime users. [ainvest.com]
- Operational Scale: Hiring 250,000 seasonal workers and leveraging a $4B in-house delivery network for speed. [ainvest.com]
- Marketing Playbook: Full-funnel ad strategy—Sponsored Products, Brands, and Display ads—plus holiday bundles to lift AOV. [estorefactory.com]
Walmart
- Tech-Driven Shopping: Rolled out AI-powered tools in its app—features include:
- AI-generated shopping lists and party planning via chatbot “Sparky.”
- In-store navigation and savings finder.
- 3D/AR showrooms for home décor and holiday setups. [corporate….almart.com], [loyalty360.org]
- Value Focus: Thanksgiving meal basket for under $40, plus aggressive Black Friday rollbacks and clearance deals. [thestreet.com]
- Omnichannel Push: Enhanced app experience drives 25% higher spend when used in-store; expanded same-day delivery and Walmart+ perks. [corporate….almart.com]
- Pricing Strategy: Combines price rollbacks on essentials with selective premium pricing to balance affordability and margins. [ainvest.com]
Target
- AI-Powered Features:
- Gift Finder for personalized recommendations.
- List Scanner converts handwritten lists into shoppable carts.
- Upgraded Store Mode for in-store navigation and fulfillment options. [retaildive.com]
- Experiential Retail: Stores transformed into nostalgic Alpine-themed spaces with sensory elements (holiday scents, décor, photo ops) to boost traffic. [businessinsider.com]
- Product Strategy: Introduced 20,000 new items, half exclusive; thousands of gifts priced under $20; pop culture collaborations (e.g., Stranger Things, Wicked). [ainvest.com]
- Marketing Campaigns: “Step Into the Holidays” featuring whimsical characters like Get-Ready Yeti and Kris K. (“Hot Santa”) to create joy and social buzz. [retaildive.com]
- Fulfillment: Expanded next-day delivery zones and reinforced same-day options via Shipt. [linkedin.com]
Kohl’s
- Early Promotions: Black Friday Early Access (Nov 7–9) and extended Black Friday Week (Nov 23–29). [corporate.kohls.com]
- Gamified Engagement: Launched Kohl’s Holiday Quest, a digital sweepstakes with $1M+ in prizes and daily chances to win Kohl’s Cash or $100K grand prize. [corporate.kohls.com], [parade.com]
- Value-Driven Assortment: Gifts starting at $9.99, expanded private brands (LC Lauren Conrad, FLX), and restored coupons on select items. [ainvest.com], [wwd.com]
- Marketing: Celebrity-led campaign featuring Ellie Kemper as “Kohl’s Mom,” plus heavy emphasis on affordability and family-centric messaging. [wwd.com]
- Omnichannel Tools: Digital features like “My List” for personalized shopping and AI-driven inventory optimization. [ainvest.com]
Key Differentiators
- Amazon: AI + logistics dominance; ecosystem integration.
- Walmart: AI + AR for convenience; aggressive value positioning.
- Target: Experiential retail + exclusivity; strong AI personalization.
- Kohl’s: Gamification + affordability; private-label focus.
- Macy’s: Successfully incorporates all these strategies for an impressive omnichannel holiday campaign.
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