Department stores are aglow with thousands of twinkling Christmas lights and lavish window displays, all designed to attract shoppers and lift spirits during a potentially dreary season. With consumer budgets squeezed, a full luxury rebound not expected until next year, and the Trump administration’s tariffs disrupting pricing strategies, the pressure is on for the crucial fourth-quarter holiday sales to deliver. Retailers are going all out, devising ways to boost sales without leaning too heavily on promotions, which would further erode margins at a time when supply chain costs are rising.
Vogue Business examined the holiday plans of six major retailers in the US, the UK, and Ireland—Bloomingdale’s, Nordstrom, Selfridges, Harrods, Liberty, and Brown Thomas—to see how they are enhancing their store displays, curating giftable collections, and positioning themselves as essential destinations in what promises to be a complex and competitive shopping season.
Bloomingdale’s: From Scarves to Santa
A giant Burberry check scarf wraps around Bloomingdale’s 59th Street façade. Inside, a crimson-check capsule collection ranges from graphic tees to beanies, alongside collectible Burberry-dressed holiday bears and a branded takeover at the rotating retail space, The Carousel. Burberry is the “co-author” of Bloomingdale’s immersive holiday experience, a partnership born from “a shared desire to build a holiday moment that feels both iconic and joyful,” says Rachel Abeles, Bloomingdale’s SVP of customer and revenue growth.
“The holidays are when people want to feel connected—to family, to tradition, to each other,” Abeles notes. This sense of togetherness is at the heart of the US department store’s Happy Together holiday campaign, which highlights the cross-generational and emotional aspects of festive shopping. “Customers aren’t just searching for gifts during the holiday season; they’re searching for moments that feel special and experiences that enrich their lives.” For 2025, the level of brand integration and immersion at Bloomingdale’s flagship is the deepest yet. Beyond the Burberry activations, Canada Goose has set up a holiday pop-up featuring heritage and archival pieces, Baccarat has revamped the content studio and cocktail bar Studio 59, and Santaland—a tradition for many visitors—has been reimagined.
According to Abeles, the fourth quarter brings in nearly half of the retailer’s annual customer base, who shop across multiple channels. “Digital is our front door; it drives relevance, acquisition, and discovery early in the season. But stores are where our brand emotion comes to life and loyalty deepens,” she explains. This year, Bloomingdale’s is focused on creating multi-touchpoint destinations that offer something for everyone.
Nordstrom: Embracing Nostalgia
What makes a good gift? That was a key question for Nordstrom when planning this year’s holiday strategy. “There has to be a story behind a good gift,” says chief merchandising officer Jamie Nordstrom. “You want to be able to tell someone why you bought it.”
Nordstrom anticipates high demand for cashmere, Skims pajamas, Uggs, Jo Malone perfume, and Beats by Dre headphones. To make shopping for these and other items as easy as possible, the retailer has dedicated first-floor spaces in its stores to gifting, with curated picks for kids, teens, and adults within easy reach. Nordstrom—enjoying a bit more freedom this Christmas as its first since going private—is emphasizing physical retail to boost margins, offering free photos with Santa for loyalty members and running a campaign that frames holiday shopping as a discovery rather than a chore.
“Our website excels when you know exactly what you’re looking for,”When you know exactly what you want to buy, shopping is efficient. But often, you just want to browse and discover something new—something you didn’t even know you wanted. Stores excel at offering that serendipitous find,” says Nordstrom.
This year, price promotions play a smaller role in holiday strategy. Instead, Nordstrom highlights its under-$50 gift selection. “Data shows that’s where people are shopping—it’s the magic number this season, and we’ve focused on that,” he explains. Items like a Voluspa candle or a Nodpod weighted sleep mask are featured prominently for budget-conscious shoppers. In January, the retailer will review sales performance item by item to assess how tariffs may have impacted the holiday season.
Selfridges: The Perfect Partner
This Christmas marks the first holiday season in which British department store Selfridges has teamed up with a brand collaborator: Disney. From November through December, its Oxford Street windows—along with those in Manchester and Birmingham—will showcase Disney animations, while shelves are stocked with exclusive products created by Selfridges, Disney, and over 70 brand partners. The iconic yellow shopping bag has also been redesigned for the first time since the store’s 2009 centenary, and the London store’s façade hosts a Tinker Bell light show—the largest installation on the building in over 50 years.
“We drew inspiration from British classics like Alice in Wonderland, Peter Pan, and 101 Dalmatians, which influenced everything from our windows and façade to the products,” Selfridges creative director Will Wyness told Vogue Business before the launch. For him, Christmas is Selfridges’ biggest moment of the year, making it the ideal platform to tell these stories. The collaboration was two years in the making. “It was a significant internal decision, as we’ve never had a headline collaborator for Christmas. But Disney has been a big part of everyone’s lives.”
By partnering with Disney, Selfridges taps into the cozy, magical essence historically associated with the brand and its connection to the festive season. “We wanted to create a conversation where our worlds meet, from product development to overarching storytelling and marketing,” said Wyness.
Harrods: Immersive Storytelling
Harrods is emphasizing storytelling this festive season. The London-based department store has partnered with Brunello Cucinelli on its key window display, while outside, the Brunello Cucinelli Visionary Dream Van offers traditional panettone and winter beverages to passersby. “Physical retail is about creating memorable moments—and Harrods always aims to deliver that ‘wow’ factor. This year, we’re focusing on a tactile and elegant approach, from grand window displays to intimate in-store experiences that inspire wonder,” says Alex Unitt, partnership director at Harrods. “It’s about turning shopping into an experience where customers connect with the brands they love.”
Harrods expects beauty and toys to perform well this season, especially as a diverse range of customers from different countries, ages, and lifestyles visit the flagship store during the holidays. “Our dedicated Popmart and Jellycat spaces will undoubtedly attract significant attention, offering unique collectibles that resonate with younger audiences. Ultimately, the season is about diversity and discovery, and Harrods is the go-to place for both,” says Unitt. “While we remain mindful of macroeconomic factors, we’ve doubled down on exclusivity and craftsmanship. Customers are increasingly discerning, seeking pieces that resonate and stand the test of time. That philosophy is more relevant than ever this season.”
Liberty London: Emotional Connection and PlaLondon’s Liberty department store is marking its 150th anniversary in 2025. Outgoing managing director Sarah Coonan has declared that this year must “exceed all expectations.” To achieve this, the store has chosen “The Making of Christmas” as its holiday theme. From the campaign and window displays to the central atrium installation and online store, the festive visuals follow a playful elf behind the scenes at Santa’s workshop.
“We’ve spent the year highlighting artistry and craftsmanship, and who better to center our story on than Santa’s elves—the ultimate artisans,” says Coonan. “When people are cautious, they lean toward what feels meaningful. For us, that means celebrating craftsmanship, our history, and the sense of discovery customers experience at Liberty.”
Coonan expects the store’s popular diaries and scarves—featuring Liberty’s classic floral and graphic prints—to sell well, especially among price-conscious shoppers. Fragrances are also predicted to perform strongly. “People want value, beauty, and timelessness,” she says. “Our values go beyond commercial results. Success this year will be measured by engagement—that emotional connection with our customer.”
Brown Thomas: Personalized and Exclusive
Irish department store chain Brown Thomas is focusing its holiday strategy on deepening customer loyalty and enhancing the shopping experience. “Irish customers are among the most engaged globally, visiting us nearly five times a year on average—more than double comparable markets—and we’re creating a season that reflects that connection,” says Donald McDonald, CEO of Brown Thomas Arnotts. This year, the retailer is launching its “This is Christmas” campaign alongside a new paid membership program called Inner Circle, which McDonald says will deliver “a more personalized, privilege-driven, and exclusive Christmas experience.”
This holiday season will also be Brown Thomas’s most immersive to date. “We’ve developed a richer program of luxury brand activations, curated pop-ups, and intimate in-store events—all designed to bring the season’s creativity and storytelling to life,” McDonald explains. This includes exclusive capsule collections, limited-edition collaborations, masterclasses, and gifting experiences across fashion, beauty, and home.
According to McDonald, customers value convenience, seamless omnichannel shopping, and trusted in-store advice, so categories that make gifting easy and thoughtful—including beauty and fragrance—tend to lead during the holidays. “We’re also seeing strong engagement with our brand activations and pop-ups, which give customers a sense of discovery and excitement when they visit,” he says. “The atmosphere at Brown Thomas is a major draw in itself—from the grand piano to our globally recognized singing doorman, whose performances go viral every year. Those moments of warmth, service, and theater are a powerful part of what brings customers back throughout the festive season.”
Frequently Asked Questions
FAQs How Department Stores Are Heating Up a Slow Holiday Season
BeginnerLevel Questions
What does heating up a slow holiday season mean
It means department stores are using special promotions events and strategies to boost sales and shopper interest during a holiday period that otherwise seems weak or slower than expected
Why is this holiday season predicted to be slow
Factors like high inflation economic uncertainty and consumers being more cautious with their spending have led to forecasts of slower sales growth compared to previous years
What are department stores doing differently this year
Theyre focusing on experiences exclusive product launches earlier and steeper discounts better loyalty rewards and emphasizing value to attract shoppers
Are discounts the main strategy
While discounts are important many stores are also competing on convenience unique gifts you cant find elsewhere and creating a festive memorable instore atmosphere
Can you give an example of a specific promotion
Examples include Black Friday deals starting in early November special oneday sales for loyalty members or giftwithpurchase offers when you spend a certain amount
Advanced Practical Questions
How are department stores using data to drive holiday sales
Theyre analyzing customer purchase history to send personalized offers using inventory data to ensure popular items are in stock and tracking online browsing to retarget shoppers with ads
What role does online vs instore shopping play in their strategy
Its fully integrated Stores are using their physical locations as hubs for order pickup returns and experiential events to drive traffic while ensuring their websites and apps are seamless for deals and browsing
Whats a common problem department stores face during slow seasons and how are they solving it
A big problem is excess inventory Theyre solving it by using dynamic pricing offering flash sales and bundling slowermoving items with popular ones
How are they competing with online giants like Amazon
By leveraging what Amazon cant easily replicate immediate product touchandfeel personal styling advice festive instore decorationsevents and services like gift wrapping Theyre also pricematching on key items
Are sustainability or ethical concerns part of their holiday push
Increasingly yes Some are highlighting sustainable product lines buy less buy better messaging