The big-box retailers have clear priorities and high hopes for what’s expected to be a challenging season ahead.

Christmas 2026 at retail is looking much more price-sensitive than holiday seasons from years past.

The challenges are mounting with lower consumer confidence and rising prices in food, fuel, housing and health care.

Target and Kohl’s both aim to keep the shopping experience simple, convenient and filled with more items priced $5, $10, $15 and $20. Executives don’t say prices for gifts will be lower than last year, or that markdowns will be steeper. But they do say there’s more being offered at the low end of the price spectrum, knowing Americans are getting pinched by inflation. Value continues to be the catchphrase, with retailers saying they’re doing a better job at communicating the inherent worth of their products. They’re also beefing up conveniences and services like speedy delivery; buy-now, pay-later options and AI agents that provide help finding and purchasing gifts.

Several retail authorities and organizations have predicted that holiday retail sales in the U.S. will be up around 4 to 5 percent, but the season could end up at or just above flat when considering the impact of inflation.

“Value plays an important role all year, especially during the holiday season. And yes, of course, that means incredible pricing,” said Michael Fiddelke, Target’s chief executive officer, at the retailer’s holiday presentation Tuesday afternoon in Manhattan’s Chelsea neighborhood. “Thirty-five bucks for that throw over there is an incredible deal.”

At the Kohl’s holiday presentation Wednesday morning, Arianne Parisi, chief customer officer overseeing marketing and digital, said: “We’re thinking first and foremost, value.

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