The news: Nordstrom and Saks Fifth Avenue are doubling down on what sets department stores apart this holiday season while using technology to make shopping more convenient.

The details: While we expect online holiday sales to rise 7.0% this year, both retailers are looking to capture a larger share of the 78.5% of holiday spending we expect to occur offline by making store visits an occasion, not just an errand.

Nordstrom is taking a multipronged approach to draw shoppers into its stores:

Festive events: Holiday breakfasts with Santa and Nordstrom’s Nordy mascot, along with events like Glam-Up Days and Beauty Bashes, give shoppers reasons to visit throughout the season.

Exclusive merchandise and partnerships: Its partnership with FAO Schwarz brings dedicated toy shops to select locations and curated toy selections to every store and online. Additionally, Bowie80 immersive shops celebrating David Bowie’s 80th birthday in select locations will feature limited-edition collections from brands including AllSaints, Barbour, and Paul Smith.

Tech-enabled convenience: New app features include In Store mode, which helps shoppers locate items, and the AI-powered Request a Look feature, which provides personalized recommendations. Nordstrom is also offering same-day beauty delivery in more than 15 markets, including Los Angeles, New York, Chicago, and Miami.

Saks is also turning its stores into holiday destinations:

• Visual spectacle: Its New York flagship will feature animated holiday windows celebrating the city, seasonal shopping, and fashion. The displays and its iconic light show will debut November 23.
• Immersive experiences: A Holiday Market at the flagship store will offer holiday décor and gifts alongside whimsical displays featuring a life-size Santa, dancing penguins, and a collectible snow globe. Other locations will also host festive in-store events.
• Distinctive gifting: A new Epicure program will offer gourmet treats in keepsake tins inspired by New York City landmarks.

While Bloomingdale’s has yet to detail this year’s holiday setup, it could resemble last year’s plan, which sought to turn the retailer’s stores into immersive destinations with themed windows, limited-edition merchandise, brand pop-ups, and live entertainment.

Implications for retail: While 69% of shoppers expect to shop at large online retailers like Amazon and 57% at big-box stores like Walmart, just 28% plan to shop at a department store this year, per Tinuiti. With large online retailers competing on convenience and big-box chains on value, department stores need compelling reasons for shoppers to visit.

Nordstrom and Saks are betting that while Amazon and Walmart help consumers check items off their to-do lists, department stores can turn shopping into an experience through exclusive products, thoughtful curation, and memorable in-store moments. Technology can smooth the path to purchase, but discovery, high-touch service, and experiences that shoppers can’t replicate with a click can help turn holiday foot traffic into sales.