Skyrocketing prices and sky-high shipping costs are turning the joy of holiday decorations, like artificial Christmas trees, into a seasonal headache for retailers and customers alike. Vendors of artificial trees are reporting price increases of up to 200%, with delivery costs reaching eye-watering amounts due to shipping chaos and bottlenecks.
Balsam Hill, a major U.S. retailer of artificial trees and other holiday decorations, warns that customers will see a 20% price hike on their beloved holiday trends. Despite the price jump, the company expects to sell 1.5 to 2 million artificial trees this year, representing a 25% increase in demand from 2022.
However, the CEO of Balsam Hill, Mac Harman, is concerned about the ability to meet increased demand due to shipping delays. Lingering effects of the pandemic and skyrocketing container and labor costs have resulted in months-long delays in shipping, pushing delivery times and potentially causing supply chain disruptions.
As time ticks closer to the holiday season, vendors of seasonal decorations are growing anxious, fearing they won't have enough inventory to fulfill demand. Established retailer National Tree Company, based in Cranford, New Jersey, is no exception: their CEO, Chris Butler, predicts that, in the wake of a challenging pandemic year, consumers will still be eager to embellish their homes with holiday cheer while purchasing festive decorations.
Their expected sales boost comes as National Tree Company faces challenges of its own: with the majority of their products being manufactured in China, soaring container and labor prices are cutting into their bottom line. In an effort to offload some of these costs, they are increasing their wholesale prices for trees by up to 25%.
Similarly, family-owned Treetime, with a base in Lake Barrington, Illinois, has grappled with increasing shipping expenses, reporting a year-on-year jump of over 500% on freight costs. To recoup some of these losses, Treetime has resorted to upwardly revising their prices, even as they strive to keep the hikes below 20%.
In a year of uncertainties, misfortunes, and relentless price increases, the world of holiday decorations might throw a curveball or two yet—so-take advantage of that early bird discount on your artificial Christmas tree!
