This blog post is based on a recent article in Retail Dive: https://www.retaildive.com/news/consumer-joy-deficit-holiday-season-retail-marketing/807615/

The holidays are meant to be joyful — but this year, many consumers are feeling the strain.

According to recent studies, more than 60% of shoppers expect holiday expenses to put financial pressure on their households, and nearly 58% anticipate higher prices on gifts. Inflation, tariffs, and rising costs have created what experts are calling a “joy deficit” among consumers.

The Challenge for Retailers

Instead of lifting spirits, many marketing campaigns unintentionally reinforce stress. Shoppers are bombarded with messages about rising prices, limited deals, and urgency — all of which amplify anxiety. As Katie Thomas of the Kearney Consumer Institute explains, “You’re stressed out, everything’s expensive, and you’re getting that told back to you.”

Retailers who lean too heavily on discount messaging risk eroding trust. Consumers are increasingly sensitive to shrinkflation and pricing games, noticing when “sale” prices match last year’s full price. This slow erosion of confidence can damage long-term loyalty.

Shifting Consumer Behavior

• Discount-driven shopping: 87% of consumers plan to shop at discount retailers this season.
• Resale gifting: 64% of shoppers are open to gifting resale items, a trend led by Gen Z.
• Intentional spending: Shoppers are more selective about who they gift, how much they spend, and when they buy.
• Experiential alternatives: Group activities, affordable luxuries, and creative experiences are replacing traditional gift-giving.

How Retailers Can Respond

To combat the joy deficit, brands must balance empathy with value:

• Stretch the season: Early promotions in October help consumers spread out spending.
• Be transparent: Avoid artificial discounts and pricing games.
• Lean into emotion: Campaigns that highlight connection, joy, and togetherness resonate more deeply than endless deal language.
• Engage the senses: Seasonal flavors, scents, and tactile experiences (like catalogs or in-store demos) create memorable moments.

Bringing Back Joy

Retailers like Gap, Home Depot, and Etsy have embraced emotional storytelling this season, focusing on connection rather than discounts. Target’s playful campaigns and Starbucks’ whimsical ads show that joy doesn’t have to be serious — it can be lighthearted, sensory, and fun.

For brands, the takeaway is clear: holiday marketing must go beyond price. By tapping into emotion, authenticity, and creativity, retailers can help consumers rediscover the joy of the season — even in challenging times.