Why prices may increase for trees and Christmas decor this holiday
The Perfect Storm: How Unexpected Factors are Driving Up Prices of Christmas Trees and Decor
With the holiday season around the corner, it’s great to find buyers and tree lovers right in the shopping mood. Prices have increased, but you may have to consider the store and also the kind of artificial Christmas tree you’re buying.
Today, most artificial tree sellers are increasing prices and they’re blaming it all on excessive shipping costs–the longer the mess associated with the chain of global supply lasts, the more expensive trees are likely to be.
Christmas Trees: The Environmental and Economic Factors Influencing Prices
Approximately 20% higher prices are expected for trees, according to Balsam Hill’s CEO, Mac Harman.
Located in Redwood City, California, the company sells artificial Christmas trees and many other accessories to consumers directly every year in the U.S. for over $200 million.
But still, Harman explained it would not cover their own shipping container costs, which went up 300% this year.
Shipping disruptions which were caused partly by pandemic-inspired factory shutdowns have led to the prolonged delay of items. Items such as sofa sets and laptops have been held back due to the undue congestion of ports, shortages in shipping labor, amongst others.
Cranford, New Jersey-based National Tree Company supplies retailers such as Amazon (AMZN), Target (TGT), and Walmart (WMT) with artificial trees and many other decor items.
Decking the Halls with Expensive Christmas Decor
Despite another challenging year in the midst of a pandemic, CEO Chris Butler predicts buyers will be eager to celebrate with trees.
The demand for products is expected to rise 25 percent over the previous year, according to Butler. And that’s ‘from a macro perspective’. They are expecting to sell nothing less than a million or two million more artificial trees this Christmas.
Although he doesn’t worry about a strong demand, he fears that shipping delays might prevent him from keeping up with it. His company’s trees are mostly made and shipped from China.
