The Seven Most Magical Department Store Holiday Displays of 2025
Bloomingdale’s, New York City
As a kid, you’d walk by a department store in December and feel a quiet magic. You’d press your hands to the glass, take in every detail, and believe, even just for a moment, that anything was possible. The displays weren’t about selling. They were about wonder. About imagination. About creating memories that lingered long after the season passed.
That tradition still matters.
While our work at Blue Butterfly is centered on helping small to mid-size retailers create thoughtful, effective merchandising, the holiday season is one moment each year where we intentionally look up toward the largest department stores for inspiration. Not to replicate their scale, but to study their storytelling. These windows set the tone for the season, pushing creativity, craftsmanship, and emotional connection in ways that influence retail at every level. They remind us that great merchandising isn’t about size or budget, it’s about intention.
Today, in an era of endless scrolling and instant gratification, the most unforgettable holiday displays do what they’ve always done best: they make us stop. They invite us to look up from our phones, slow our steps, and feel something real. They blend nostalgia with innovation, using modern storytelling to remind us why department stores once sat at the heart of the holidays.
In 2025, a handful of retailers didn’t just decorate for Christmas. They created worlds. These are the stores and displays that captured that childlike wonder once again; reimagined for a new generation, and undeniably, beautifully Instagrammable.
1. Bloomingdale’s x Burberry, “Wicked Wonderful Holiday”
New York City
At the iconic Bloomingdale’s, Burberry’s signature plaid drapes an entire side of the building, transforming the façade into a high-fashion fairytale. Inspired by the musical Wicked,, the installation blends magic with mischief, where fantasy meets couture.. More than a visual moment, the takeover reinforces Burberry’s cultural relevance by meeting consumers where fashion, entertainment, and social sharing intersect. Bold, whimsical and cinematic. It turns a city block into a destination while proving that relevance in modern retail is built through collaboration, storytelling, and scale.
2. Nordstrom NYC, “Oh, What Funhouse!”
New York City
Nordstrom leaned into playful surrealism with a vibrant, multi-sensory holiday wonderland spanning all five levels of its flagship. Metallic trees glow in shades of pink and purple, oversized inflatable characters voiced by cultural icons, and interactive art moments. The experience feels like a holiday dream reimagined through a modern, pop-art lens. Every corner is designed to spark curiosity, encourage exploration, and turn the store itself into the destination.
3. Macy’s State Street, Marshall Field’s Heritage Display
Chicago
Few holiday traditions carry as much emotional weight as this one. Inside the Walnut Room, the iconic 45-foot Great Tree floats from the ceiling, dressed in green, blue, and gold, each of its 1,500 ornaments placed by hand. The display pays homage to Marshall Field’s legacy with Frango Chocolates, a giant Field’s shopping bag, and the beloved green clock. Outside, nostalgic windows titled “The Most Wonderful Stories Start Here” honor over a century of Chicago retail history. This isn’t just Instagrammable, it’s generational, reinforcing how tradition, when thoughtfully preserved, becomes a powerful driver of connection, loyalty, and place.
4. Neiman Marcus Downtown, The Palladian Tree
Dallas, Texas
Luxury goes full theatrical in downtown Dallas. Neiman Marcus continues its century-old tradition with artist-designed holiday installations anchored by the iconic Palladian Tree. Oversized ornaments, abstract fantasy, and fashion-forward drama in every detail. Thousands of lights cover the exterior while curated windows unveil one by one. It's opulence with intention. Southern elegance wrapped in seasonal sparkle, and a reminder that when done right, tradition doesn’t fade; It captivates.
5. Macy’s Union Square, The Holiday Windows with Heart
San Francisco, California
Macy’s Union Square partners with the San Francisco SPCA to offer a softer kind of holiday spectacle, one rooted in compassion and connection. Each season, its windows transform into cozy, storybook scenes featuring adoptable puppies and kittens, nestled into festive décor. In a season often defined by excess, Macy’s proves that the most memorable and most shareable holiday moments are the ones that align brand visibility with values, turning foot traffic into feeling and attention into impact.
6. Macy’s Center City, The Wanamaker Holiday Experience
Philadelphia, Pennsylvania
Macy’s Center City transforms the historic Wanamaker Building into one of the most iconic holiday experiences in the country. A towering Christmas tree glows beneath the world’s largest playable pipe organ as a choreographed holiday light show fills the space with color and sound. Cinematic and deeply nostalgic, the experience is anchored in tradition while continuing to draw new generations inside. When retail honors place, history, and scale, relevance isn’t something to reinvent, it naturally resurfaces, season after season.
7. Saks Fifth Avenue, The Holiday Light Show Returns
New York City
After a brief hiatus in 2024, the beloved Saks Fifth Avenue holiday light show returns in 2025 with a reimagined spectacle that feels as iconic as ever. Dazzling lights dance across the façade in perfect rhythm, transforming the entire Fifth Avenue storefront into a glittering canvas. The experience is anchored by six enchanting window displays inspired by moments across New York City, bringing the magic of the season to life through fashion, movement, and story. Running every ten minutes, the light-and-sound show is pure holiday theater, grand, joyful, and a defining expression of New York Christmas magic. A powerful reminder that when retail becomes a shared public moment, it cements relevance far beyond the store doors.
Happy Holidays from Blue Butterfly!
