# Macy's Herald Square rebuilt Santaland and Holiday Square to reverse store traffic decline during peak holiday season

*The department store invested in two experiential zones designed to extend dwell time and convert foot traffic into incremental transactions.*

By **Jenny Huang Goodman MPA MSc MHSA, Principal** — The Stash Edge, Hako Shikin LLC.
Published 2026-10-24.

Canonical: https://www.pops4.com/stash/articles/macys-2026-10-24t15-6
Subject: Macy's
Tags: experiential retail, seasonal marketing, foot traffic, store layout, event marketing, conversion design

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Macy's redesigned its flagship Herald Square holiday experience by rebuilding Santaland and reintroducing Holiday Square, according to Retail Dive. The move responds to sustained foot traffic erosion in traditional retail during the critical November-December window, when department stores historically generate **25-40%** of annual revenue.

The retailer overhauled Santaland with updated theming, expanded photo opportunities, and repositioned the experience to encourage longer visits. Holiday Square returned as a dedicated shopping zone within the store, stocked with seasonal merchandise and positioned along the path from Santaland back to street exits. Both installations were designed to create sequential stops, not single-purpose visits.

The mechanism is extension economics. A shopper who enters for a single attraction—meeting Santa—represents minimal transaction value. The same shopper who moves through a designed sequence of environments encounters multiple conversion moments. Santaland delivers the traffic driver. Holiday Square provides the merchandising intercept. The store layout makes the second stop natural, not forced. This converts event attendance into basket lift without relying on direct upsell at the attraction itself.

The strategy exploits a structural advantage department stores still hold: vertical control of large, contiguous square footage. Macy's did not add external programming or third-party vendors. It redeployed existing space and applied experiential design to create a longer customer journey. The cost sits in build-out and seasonal labor, not ongoing platform fees or rev-share.

The steal for a physical-product brand is the two-stop holiday event. First stop: the attraction. Second stop: the transaction. A candle brand hosts a holiday wreath-making workshop in its retail space or a pop-up. The workshop runs in one area. Participants then move through a dedicated holiday shopping zone featuring limited seasonal scents, gift sets, and wrapping service before exiting. The workshop drives attendance. The shopping zone converts it. Price the workshop to cover direct costs or run it free as a traffic generator, depending on your unit economics.

Set the physical path intentionally. Workshop tables in the back or side of the space. Checkout and seasonal display between the workshop area and the exit. Participants must walk past curated product to leave. Staff the shopping zone separately from the workshop instructor so transactions do not interrupt the event. Promote the workshop through email, organic social, and local partnerships with complementary retailers. Budget **$200-600** for materials per session depending on scale, plus incremental labor. Track conversion rate from attendees to purchasers, and average basket size versus walk-in traffic.

The broader pattern is designing for dwell time, not visit count. A single high-intent visitor who stays longer and encounters more conversion moments outperforms three quick browsers. Physical product brands have full control over their spatial layout, which makes sequential stop design more accessible than it appears. The cost is design rigor and the discipline to separate the attraction from the sale.

## The takeaway

Build two distinct zones—one experiential draw, one merchandising intercept—and route foot traffic through both to convert event attendance into transaction lift.

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## Publisher

**Hako Shikin LLC** — Virginia Beach, Virginia. Founded 1997. ASI 217876 · DUNS 18-204-6339.
Principal and author: **Jenny Huang Goodman MPA MSc MHSA**.

- Author: https://www.huanggoodman.com/about
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