What: Nordstrom’s “Oh, What Funhouse!” campaign at its New York flagship reimagines holiday shopping through sensory experiences, curated gifting, and festive events.

Why it is important: The integration of immersive experiences and affordable gifting aligns with evolving consumer expectations and competitive pressures highlighted in recent analyses.

Nordstrom’s Manhattan flagship has redefined the holiday shopping experience by launching the “Oh, What Funhouse!” campaign, transforming the store into a vibrant, interactive playground for all ages. Across five floors, customers encounter whimsical installations such as giant mirrors, gumball machines, and a floating piano, all designed to evoke joy and creativity during the typically hectic holiday season. Traditional elements, including Santa events and classic Christmas scenes, are seamlessly integrated with innovative features like a personalized gift guide and a dedicated “Gift Shop at the Corner,” which offers an expanded assortment of over 1,000 gifts—90% priced under $100 and 60% under $50. The campaign is supported by a robust digital presence, including an AI-powered gift expert and an enlarged holiday catalog, ensuring a cohesive omnichannel experience. This strategy not only enhances customer engagement but also positions Nordstrom competitively against rivals like Macy’s by emphasising affordability, personalisation, and memorable in-store activations. 

IADS Notes: Nordstrom’s holiday strategy, as detailed in the October 2025 press release “Nordstrom unveils the holiday campaign,” merges digital innovation, value-driven gifting, and immersive in-store experiences to position the retailer as a joyful gifting destination. This mirrors Macy’s competitive push with experiential holiday markets, as reported by Retail Dive in September 2025, and reflects a broader industry trend toward integrating digital and physical retail, as well as a focus on affordability and curated experiences, highlighted in Retail Dive’s October 2025 coverage of Nordstrom’s holiday catalogue relaunch. Nordstrom’s ongoing investment in interactive retail, from its flagship transformation to service-driven local hubs (WWD, July 2025), demonstrates its commitment to innovation and differentiation in a highly competitive market.

Nordstrom’s Manhattan flagship has transformed holiday shopping into a playful experience