The news: Department stores are leaning into experiences, entertainment, and convenience this holiday season as they look to reestablish themselves as must-visit shopping destinations.

The examples:

Macy’s is combining gift inspiration with in-store experiences through its nationwide “There’s Magic Inside” holiday campaign. Featuring Melissa Joan Hart as Macy’s Gift Guide and Adam Devine as a shopper searching for the perfect gifts, the campaign highlights the retailer’s broad assortment through curated gift guides, recommendations, and seasonal events. At its Herald Square flagship in New York City, Macy’s is reimagining Santaland and transforming more than 50,000 square feet of its lower level into Holiday Square, featuring more than 35 vendors, including local artisans, specialty food purveyors, and New York City favorites.

Neiman Marcus is celebrating the 100th anniversary of its iconic Holiday Book with its nationwide “Holiday Fantasy” campaign, featuring supermodel Natasha Poly, curated gift guides, and six extravagant Fantasy Gifts—including a six-day journey through Venice, Florence, and Milan hosted by the Buccellati family. The retailer kicked off the season at its Beverly Hills flagship with brand activations, live entertainment, and food and drink experiences.

JCPenney is tapping into music fandom through an expanded partnership with iHeartRadio Jingle Ball that includes a limited-edition fashion collection for women, men, and kids, along with opportunities to win VIP concert access and meet performer Bella Kay. JCPenney Rewards Access members can also unlock an exclusive backstage experience, while fans can collect custom patches designed by Kay at select tour stops and in-store activations.

Kohl’s is emphasizing value and convenience through its nationwide “The North Kohl’s” holiday campaign, featuring themed shopping hubs such as Cozy Corner, Style Square, and Hosting Headquarters that make it easier to discover gifts, apparel, and home goods. Most items in its refreshed Holiday Gift Shop are priced under $15.

Those efforts follow similar moves by Nordstrom and Saks Fifth Avenue, which are drawing shoppers with exclusive merchandise, personalized, tech-enabled services, and distinctive luxury gifts.

Why it matters: Amazon and Walmart have built their retail dominance in part on vast assortments and fast delivery. Department stores can differentiate themselves by offering something harder to replicate: discovery, entertainment, and memorable in-person experiences.

With physical stores expected to account for 78.5% of US holiday retail sales this year, per our forecast, there’s a significant opportunity for department stores to capture spending by giving consumers compelling reasons to visit. More than a quarter (28%) of US holiday gift buyers plan to shop at department stores this year, while another 21% expect to purchase gifts from department stores online, per Tinuiti. However, department stores face stiff competition from large online retailers (69%) and physical big-box stores (57%).

Implications for retail: Experiences can draw traffic, but attracting visitors is only half the battle. Unless those experiences connect directly to shopping, they risk generating attention without driving sales. Retailers need to translate engagement into purchases and, ideally, repeat visits. The holidays offer a unique opportunity to capture consumers’ attention, but the longer-term opportunity is to make shopping itself a competitive advantage by combining experiences consumers can't get online with the convenience they've come to expect from ecommerce.