Value Sensitivity and Smart Splurges

This holiday season, consumers are more value-conscious than ever, a shift shaping holiday retail marketing. With the economy feeling uncertain and everyone tightening their budgets, shoppers are actively looking for deals and meaningful ways to spend less. Yet even in a cautious climate, people are still planning to celebrate and spend, just differently.

Instead of focusing on quantity, many are prioritizing quality, experiences, and connection. They’re trading piles of gifts for shared moments, thoughtful gestures, and items that spark joy. The focus has shifted from more to meaningful.

Why Value and Transparency Matter

For retailers, this shift means creativity and authenticity are essential. Shoppers are asking:
Why does this product cost what it does?
What makes it different?
Will it hold its value?

The brands that win this season will be the ones that can clearly communicate value and show it. Offering transparency about pricing, materials, and sourcing builds trust. Add in flexible payment options like Buy Now, Pay Later, and you’ll boost both loyalty and sales.

A Real-Life Shopping Lesson

Recently, while shopping with my husband at Nordstrom in Roseville, CA I saw this shift firsthand. He needed three pairs of shoes: slippers, workout sneakers, and something stylish for everyday wear. After browsing what felt like a hundred pairs, the shelves were dominated by the same few brands. The salesperson kept suggesting ON and Hoka, which seem to be everywhere right now with two full walls of them!

He just wanted a classic pair of Adidas or Nikes, but choices were slim. We finally left with Birkenstock slippers (which surprisingly became his favorite) and two pairs of Nikes. As we walked out, I turned to him and said, “I think Nordstrom’s in trouble.”

The shelves were thin, and the energy was missing. That’s when it hit me: inventory is everything. Without strong selection and depth, in-store shoppers turn to online options instead. This holiday season, retailers need to buy deep and plan smart to ensure customers can find what they want. You can’t sell what you don’t have.

Four Ways to Add Value and Smart Splurges This Holiday Season

1. Elevate the Everyday

Encourage small indulgences that make daily life feel special. A luxury candle, premium coffee subscription, or plush throw blanket can deliver comfort and joy without overspending.

2. Bundle Experiences with Products

Combine tangible gifts with meaningful experiences. Think wine glasses paired with a local tasting, or yoga mats with a complimentary fitness class. Gifts that create memories go further than those that simply fill space.

3. Share the Story of Value

Today’s shoppers want to understand what makes a product worth it. Tell the story, who made it, how it’s sourced, and why it lasts. Transparency builds confidence and emotional connection.

4. Create Limited-Edition “Smart Splurges”

A little indulgence still excites the shopper’s heart. Offer limited-time or personalized items that feel exclusive and memorable. Smart splurges are the ones that carry a story and that story often makes the gift priceless.

Wrapping Up

This holiday season, consumers are redefining what it means to give and receive. They’re prioritizing connection, meaning, and value over volume. For retailers and marketers, that’s an opportunity to reimagine not just what we sell, but how we make people feel and that’s the heart of effective holiday retail marketing.

What’s something special you can imagine sharing this holiday season to make gift-giving truly meaningful?

If you can image it, we can help you share it. Creative Marketing Arts partners with brands to craft campaigns that spark emotion, drive engagement, and inspire connection this holiday season.

Kim Kelley, Marketing Guru

Kim Kelley is the founder of Creative Marketing Arts, a California-based marketing agency specializing in digital strategy, experiential events, and community-driven campaigns. With over 30 years in the shopping center industry, Kim blends creative ideas with data-driven marketing to deliver innovative solutions for REIT advertising and brand engagement. With an eye for detail and a passion for results, she helps clients discover Out of the Box strategies that connect with audiences and build loyalty.

CMA partners with local and national brands to create meaningful connections that inspire action. The full service marketing agency proudly supports community causes, including the Homeless Assistance Resource Team (HART) and the Sacramento SPCA, by donating a portion of proceeds from every event to help families and animals in need.