Holiday disappointment: prices skyrocket for Christmas trees and decorations

Some big sellers of artificial trees say they are increasing their prices by double-digit percentages and blaming unreasonably high shipping costs related to the current mess in the global supply chain.

Months and months of shipping disruption resulting in part from pandemic overseas factory closures, port and container congestion, and labor shortages have resulted in delays for products ranging from laptops to sofa sets.

Now, with the holiday season approaching, seasonal decor vendors are also keen to have enough products in stock to meet demand.

Chris Butler, CEO of the company, expects buyers to want to indulge in decorations to celebrate, especially after another difficult year during a pandemic.

“From a macroeconomic perspective, we expect demand for our products to increase by 25% over last year,” said Butler. “We plan to sell around 1.5 million to 2 million artificial trees this year.”

But he’s worried that if the demand is too high, there might not be enough stocked to meet it due to shipping delays. Most of the company’s products are made in China.

“We think we are 10% below our usual level each year with our inventory of trees, wreaths and garlands,” he said. Butler said the National Tree Company is increasing its wholesale prices by 20 to 25 percent due to sky-high transportation costs. Retailers, in turn, could pass some of that price increase on to consumers, he added.

“We had no product to sell”

The American Christmas Tree Association industry group estimates the overall size of the US artificial Christmas tree market to be between $ 1 billion and $ 2 billion per year.

At Balsam Hill, delays in receiving inventory have already created unprecedented setbacks.

In mid-August, the company sent out its fall product catalog. Besides Christmas products, the company also sells fall decor items like wreaths for the front door or porch, which it imports from China along with most of its other fall products and trees. of Christmas.

“For the first time for us, the catalog was out and we had no product to sell,” Harman said. “Our shipments did not arrive on time. We always try to find out exactly where the products are. Are they still on the water or stranded in ports? If this continues, we may close our doors.

Some stocks have arrived. “That’s about 12 of the 50 products listed in the catalog,” he said. “Our overall daily sales are drastically down because we have no items to sell.”

He hopes to be in a better position with the Christmas trees “because we bring them all year round,” he said. But even so, Harmon said Balsam Hill’s tree inventory was about 22% lower than last year, and the overall seasonal holiday decorating inventory was down 42% from last year. year after year.

“What concerns us the most are decorations like ornaments, tree skirts and wreaths,” he said. “We buy these products from all over the world. Even if one or two containers with these items are delayed, we may not have a whole category of items.” Harmon said supplies of holiday ornaments are 50% below levels last year.

Treetime, a direct seller of artificial Christmas trees and decorations based in Lake Barrington, Ill., Said it suffered a more than 500% increase in shipping costs this year.

The company designs and manufactures its own brand of pre-lit and unlit trees that cost anywhere from $ 100 to over $ 1,000 depending on height and design. Its trees are also made in China.

“We are absolutely trying to absorb some of the huge increases in transportation costs ourselves,” said Laurie Kane, co-owner of Treetime. Some of it, she said, will hit consumers’ wallets.

“We are increasing our prices, but we are trying to keep them below 20%,” she said.

Kane is keeping a close eye on holiday shipments, which shouldn’t have happened by now.

For Kane, it’s critical that inventory arrives before Thanksgiving.

“The misconception is that people start decorating in December, but it’s really late November,” she said. “December is when you buy the gifts. Will anyone want our products if they arrive later than that? That’s the biggest challenge for us.”