Image Courtesy of JCPenney
October 30, 2025
Is JCPenney Wise To Center Frugality This Holiday Season?
With reports indicating that this holiday season could be a leaner-than-expected experience in terms of consumer spend — Deloitte most recently predicted a 10% decline in average spend versus 2024’s numbers, coming in at $1,595; and CNBC suggested a “more cautious shopper” was approaching the retail holiday season this time around — at least one retailer is attempting to leverage the elephant in the room to its advantage.
According to Retail Touchpoints editor Adam Blair, JCPenney is leaning in when it comes to the concept of “thoughtful frugality,” pushing the notion that consumers can still impress their friends, family, and other loved ones by shopping within its doors — and without breaking the bank.
JCPenney Doubles Down on Value for Money in its Holiday Ad Push
With the tagline of “It’s What They Thought That Counts” centered in JCPenney’s holiday campaign, it’s clear that the retailer is looking to capture interest from deal seekers and bargain hunters while appealing to the positive emotions surrounding the act of gift-giving the holiday season evokes.
“If you’ve followed our journey, you’ll know that at the heart of our strategy, JCPenney is committed to democratizing great things: fashion for prices you can afford and gifts that get heartfelt reactions,” said Marisa Thalberg, EVP and Chief Customer & Marketing Officer at Catalyst Brands.
The campaign kicks off on Nov. 2, involving an array of ads across various traditional and social media platforms, and is focused on situations wherein shoppers get the nod for scoring a treasured and appropriate gift at an attractive price point. JCPenney’s holiday season begins in earnest with its Black Friday Early Access sale on Nov. 8, with Daily Deals following up shortly thereafter on Nov. 10.
“‘It’s What They Thought That Counts’ captures the central truth about holiday gifting: we’re all really trying to achieve that ‘I can’t believe you did this’ reaction while only you (and JCPenney) know how much you actually spent. We’re not just competing to be the loudest; we want our customers to feel a genuine connection with JCPenney, to be in on the secret, and proud when their gifts wow loved ones without breaking the bank,” Thalberg added.
And although a recent McKinsey & Company look-ahead to the holiday season suggested that consumers were about to spend about the same as they had throughout holiday 2024, a few factors — spend pull-forward, a focus on essentials rather than discretionary items, and the primacy of grocery spending — also came into sharp focus.
McKinsey Senior Partner Emily Reasor, when asked whether consumers will actually follow through on their claims of frugality, put it in the following terms:
“To me, [consumers are saying], ‘Yes, I’m still intending to spend, but I am really going to be on the hunt for the right products and at a great value.’ We’ve seen several years of high inflation and pricing levels that consumers still don’t feel are normal, so the hunt for deals will be one big theme of 2025.”
Discussion Questions
Is it wise of JCPenney to focus on frugality this holiday season, or will their twist on the adage of ‘It’s the thought that counts’ come off as overly commercial or cynical? What are your thoughts?
Is democratization in the retail business a meaningful term, particularly surrounding the frenzy and emotion that comes along with holiday gift-giving?
Poll
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JCPenney’s core customers are more considered and cautious in their spending, so focusing on frugality makes perfect sense. If the frugality were of the hair-shirted and ascetic kind, then it would be problematic as this vibe is the antithesis of the festive season. However, the marketing seems upbeat and is supported by plenty of fun gifting ideas, so it looks like a smart move to emphasize value.
JCPenney’s focus on frugality this holiday season is a smart reflection of current consumer sentiment — but success depends on tone and authenticity. With value-seeking top of mind for shoppers, framing the campaign around thoughtful giving rather than extravagance aligns well with the moment. When executed with warmth and storytelling that highlights meaningful gifting over material excess, the message reinforces JCPenney’s heritage as a value-driven brand rather than a discount player.
However, if the campaign leans too heavily on “cheapness” rather than “savvy shopping,” it risks appearing cynical or opportunistic. Consumers crave emotional connection during the holidays, not just lower prices. The key is ensuring the in-store and online experience delivers quality and discovery that supports the message — value without compromise.
As for “democratization” in retail, the term holds real meaning here: making good style and thoughtful gifting accessible to everyone. Done right, it’s an empowering message for middle-market consumers seeking joy within a budget. But democratization requires consistency — access should never feel like a downgrade in experience or emotion.
6 months ago I would’ve said this was a smart move, with thoughts of an impending recession dominant in my mind. However, we’ve yet to see the actual recession (unemployment is high but inflation is reasonable and the stock market is outperforming), I think consumers will still be in the ‘treat yourself’ mindset that we have seen in past holidays. Thus they will not be as innately drawn to a retailer preaching fiscal conservancy as we would’ve expected.
Just to play Devil’s Advocate: while I agree moderate inflation seems to negate stagflation, doesn’t its presence – coupled with rising unemployment – actually define a recession ?
A recession is declared after the financial signs of struggle have already started, often months into the downturn. Data is a look back.
Stock market is not the ‘economy’ of daily life of real average people. (It maybe what their 401k or retirement ETFs are based on)… but stock market is far different than wallet.
The top wealth will always spend. But those wealthy are also the most global… so there is no telling where on the planet they will spend. It might also be via “friends” and not as taxable or traceable to a broader economic help.
JCP’s target audience has always been financially aware of what’s in their wallet. Hopefully their holiday ads will focus on joy, giving and happiness. To overtly downcast the holidays in “frugal” talk could hurt the retailer… AND not leave them with any talking points for the rest of the year.
Thought: why-the-He** isn’t this (gruesome prediction) the discussion topic?
But back to JCP: as I noted a few weeks back, they’re in the postion where they really have to try eveything, and see what works; with a holiday “theme”, tho, they need to put forth a a consistent message (as opposed to a series of conflicting ones). Given their traditional customer base, this seems like a rational approach.
Probably because it’s absolute garbage that’s derived from extrapolating poorly conducted consumer research to actual spending forecasts. There is no way that spending will decline by 10%. Even during the financial crash in 2008, holiday spending only fell by 2.0%!
Bbbbbbuuuut
Ours is not answer, but to wonder why (…or not 🙂 )
Deloitte: bad research practice to make graphics for distribution… that necessitate going backward 2+ levels to source!
Aug 27-Sept 5, 2025, USA, 4,270 Total Overall respondents, created by Deloitte, conducted online by independent research companies.
“For retailers, this holiday season isn’t just about offering deals; it’s about meeting shoppers where they are—digitally, socially, and emotionally.”
That should be everyday, not just 4Q.
I’m not 100% sold on JC Penney”s “It’s What They Thought That Counts” campaign. The “Cousins” commerical is funny, but it doesn’t scream holiday spirit, nor does it really scream value. Tying “It’s What They Thought That Counts” into value has to be explained, and if an ad has to be explained, it doesn’t work.
Agree that if it needs explanation, it’s not working.
There are plenty of creative ways to tie together the 3-4 elements
1) person loved the gift
2) it came from JCP (via tag or flashback memory of finding it at the store)
3) on the sly, gifter knows they stayed in budget (a budget app gold star)
+ 4) it’s fun to shop JCP
This is really about saving money. There are many other retailers like Walmart, Costco, Amazon, Target, etc. who are using the same “shop with us and save money” position to appeal to their customers as well. JCP isn’t doing anything special that other major retailers aren’t already doing, so I don’t see much of an advantage for JCP.
JCP needs to find the joy of the holidays. Finding what you like at value is their standard proposition all through the year.
Maybe a showing of gifts for all generations in the family… helps tell value & gifting, without the constant reminder of ‘you’re saving money’.
Broaden that out to small gifts to neighbors, teachers, etc.
Ways to show joy & value (stretching the budget) without reference money. People strapped for cash already have too much headspace given to where every dollar goes. They need joy to be found in life.
JCPenney’s is right to focus on frugality as a theme this holiday season; however, the execution in the spot requires an excessive amount of voice-over to explain the ‘deal.’ Sound holiday message; questionable execution. The music and background, while festive, are overwhelmed by the frugality proof-point, diminishing any hope for the spirit of (self)gifting or establishing an emotional connection.
While it may not be a competitive advantage relative to other value-oriented retailers with a similar message, it certainly is good not to be tone deaf about the current reality for many people.
“Thoughtful frugality” is perfect as a bedrock plank of the JCP Brand Promise. Which means that it needed to be embraced and implemented a long time ago, so that by now it would have become embedded in customer’s thinking about which retailer to head to for holiday shopping. It’s a little bit more substantive than being an umbrella for a holiday campaign. JCP actually does have good product/prices/value. So why would they say they want their customers to be “in on the secret”…??? Why do they think their value orientation is a secret? Why is their value orientation not already abundantly obvious? I’m finding JCP’s approach to holiday 2025 a little odd.