"I have never minded "Happy Holidays" either as a greeting, but tend to use "Merry Christmas" to Christians and "Happy Chanukah" to Jews.
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I say Happy Holidays to people whose religious beliefs I do not know. I think that's the reason the retailers do the same thing. They have no way of knowing the religion of a customer, so they play it safe with the generic greeting.
I really don't know why this is so hard to understand. If someone wishes you Happy Holidays, you can respond with a Merry Christmas. The point is that you are receiving a friendly greeting appropriate for the season.
The overwhelming majority of Christmas shoppers are precisely that, Christmas shoppers. They are the reason for the decorations, for the huge sales effort, stores open late, etc. I don't see why that's hard to understand. Nor do I don't think that most non Christians are offended that retailing is directed at Christmas shoppers during a time when billions of dollars are up for grabs. I think they even enjoy the Christmas season.
Deliberately not recognizing Christmas while scheming to make billions in Christmas sales is deliberately offensive.
Put up the "Happy Holiday" stuff to include everyone if you like, put up "Happy Chanakuh" too (though I'll bet that would offend a fair number of Jews) but don't get rid of "Merry Christmas" while you're at it. The reason for the holiday season is not Chanukah, or God knows what, but Christmas.
Hell, I'm not even religious, or even Christian, but I can't help but be saddened by this rather sudden abandoning of the recognition of Christmas by not just public officials, but also those who hope to profit by it.