• by Sarah Mahoney  @mahoney_sarah, November 1, 2022

There’s plenty of evidence that consumers are planning significant cuts this year. But both Target and Kohl’s, unleashing new holiday campaigns, are betting that seasonal joy will outshine inflationary gloom.

Target’s primary push is called “Holiday Happy Place,” with TV spots set to a peppy remake of the ‘90s hit “100% Pure Love.” (This time around, it’s performed by Olly Alexander in English, and Jarina De Marco, in Spanglish.)

Ads focus on three key emotions, "the feeling of belonging, the inspiration of our affordable assortment, and the ease of our signature services," said Todd Waterbury, chief creative officer for Target, in its announcement. “But the true magic of the Target experience is the way we bring these together, that create the moments that are most meaningful for our guests.”

Created in-house, the spots showcase offerings from Target’s partnerships with FAO Schwarz, Disney and Marvel. They also highlight recently announced food and beverage items from Britain’s Marks & Spencer.

The ads also promote extensive holiday gift guides, and how easy it is to zip in for Order Pickup and Drive Up services.

Kohl's is also leading with TV spots, already airing on network TV and streaming services. Chandelier is the agency.

Besides spotlighting the breadth of offers -- from beauty to bathrobes to stand mixers --  the spots offer influencer-curated gift lists.

And in a fun twist on list-sharing, people willing to post their lists on social media are entered in a sweepstakes to win a $250 gift card.

Though seasonal ads are beginning, how much consumers will spend is still up in the air. The Conference Board just released its research and says those it surveyed plan to spend an average of $613 on gifts this season, down from $648 last year.

Still, consumers expect to spend more -- $393, versus $374 last year -- on non-gift items, including food.

“Consumers appear to be rebalancing their budgets and priorities,” says Lynn Franco, the Conference Board’s senior director of economic indicators, in its report. That includes “reducing their gift-giving circles to help offset the higher costs of non-gift items, in particular food.”