Why do you think so many department stores advertised it as a "Holiday"? It offended some 'individuals', who then return the purchase and state that as the reason. Sometimes one has to read between the lines.
Ok, let me see if I get this straight. America is the most religious country on Earth by probably an order of magnitude. Some 80% of the population of the USA identify themselves as Christians. And your claim is that department stores are replacing the word Christmas with the word Holiday so as to not offend anyone? Is that your claim?
Secondly, department stores in the USA probably realize almost half their business duriing the Christmas season. How likely is it that they are making any decisions about public perception based not on profit motive, but on making sure a few people are not offended? This isn't political correctness, it is capitalism.
Finally, stores have been using the Happy Holidays thing for as long as I can remember, which is a very long time. These days they start hyping the holidays almost before Halloween and up until a few days after Christmas. In that this spans at least fiive holidays, including Hannukah, doesn't it make sense that a store would say "Happy Holidays".
By the way, this ridiculous War On Christmas fear dates back into early in the 20th century.
In the 1921 screed “The International Jew: The World’s Foremost Problem,” automaker and notorious anti-Semite
Henry Ford observed that “most people had a hard time finding Christmas cards that indicated in any way that Christmas commemorated Someone’s Birth.” He noted menacingly, “Now, all this begins with the designers of the cards.”
Later, the Soviet Union and the United Nations were fingered for plotting to undermine Christmas. A 1959 John Birch Society pamphlet stated, “One of the techniques
being applied by the Reds was to weaken the pillar of religion in our country is the drive to take Christ out of Christmas — to denude the event of its religious meaning.” The writer sounded the alarm: “Department stores throughout the country are to utilize UN symbols and emblems as Christmas decorations.”
Sometimes one has to actually read something instead of listening to Bill O'Reilly and his paranoid rants.