Chains Look for Bigger Cut of Christmas Tree Market
The percentage of consumers going out to a farm to cut down a Christmas tree remains relatively small from a percentage standpoint as many take the more "convenient" route of picking them up at a local lot or even ordering them online for delivery right to their door.
According to the National Christmas Tree Association, consumers will plunk down $976 million on real trees this year. Another $530 million will be spent on artificial trees. While a relatively small percentage of fresh-cut trees are being ordered online, the number is growing and large chains including Costco, Kmart, Sears and Target, are looking to grab a share of the business.
According to a USA Today report, Sears is selling a nine-foot Fraser fir for $189.99. RetailWire found a similar size tree on Target.com for $174.99.
Rick Dungey, a spokesperson for National Christmas Tree Association, described online tree sales as a "small, niche market" to USA Today. He added, "But if you’re a 24-year-old, and you’re just starting a household, you’ve been buying things online a long time."
- Retailers offer freshly cut Christmas trees online – USA Today
- Consumer Surveys – National Christmas Tree Association
Discussion Questions: Do you see online sales of pre-cut Christmas trees continuing to grow? Will we see greater numbers of chain retailers getting into the business in the years ahead?