If You're Buying a Christmas Tree, Don't Pine, Just Move Fast - TheStreet

2022-09-10 01:35:43 By : Ms. Kate Wu

It may still be summer but it's never too soon to talk about Christmas.

You're probably wondering why we should think about the most wonderful time of the year when it ain't even Halloween yet. 

Well, put down that pumpkin-spice latte and listen: 

If you want to have yourself a merry little Christmas this year, you better plan ahead. That's surely what Christmas tree retailers are doing.

You may remember that tannenbaum prices last year lit up like the tree in Rockefeller Center due to extreme weather in the Pacific Northwest and Midwest, supply-chain congestion, and shipping-container shortages.

The economic instability caused by covid-19 didn't do much to spread holiday cheer either.

Despite these challenges, three-quarters (75%) of U.S. households, or 94 million homes, displayed a Christmas tree during the 2021 season, according to the American Christmas Tree Association.

In addition, nearly 6.5 million households displayed both a live and artificial tree in 2021, which the industry group said was a strong sign that consumer demand for all types of Christmas trees remains strong for Xmas '22.

This year, in an effort to chop down the supply-chain misery that hit the market in 2021, Christmas-tree retailers are bringing in product earlier than they did in Christmases past and will likely set up their stores earlier than ever before.

As for consumers who'll be rockin' around the Christmas tree this year, their choices might be a little lean, the association said.

"The good news is anyone who wants a Christmas tree this year will be able to find one, but variety in the types of live or artificial trees available may be limited," Jami Warner, the group's executive director, said in a statement. 

"If you have a specific tree in mind that will make your holiday shine the brightest, we recommend shopping early to secure your ideal tree at the right price for your family.” 

Warner said the association's recommendation to consumers this year is straightforward: if you want a specific type, style, or size of tree, artificial or live, start your search early.

On the weather front, drought is a main driver of the loss of young live Christmas trees on farms throughout the country. Growers are contending with tough challenges from irrigation-water shortages and sharply elevated temperatures.

Consumers may find fewer trees on farms or tree lots due to droughts and wildfires. And given the cost of fuel for irrigation pumps and other inflation issues, growers warn that Christmas trees may come with higher price tags. 

The association said that half of small retailers are cutting back on orders for the 2022 holiday quarter. 

Small-business owners cited inflation, supply-chain disruptions, fears of recession and losses from previous pandemic-affected years as reasons behind their reduced ordering. 

Adding to the supply-chain issue is what detractors call a regulatory lump of coal in the form of California's Assembly Bill 5. 

The law requires workers to satisfy a three-part test to be considered independent contractors, or they'll be classified as workers entitled to job benefits.

The California Trucking Association said AB 5 may keep thousands of truckers off the road while they work to comply with the new regulations. 

This in turn could hinder transportation out of the ports of Los Angeles, Long Beach and Oakland, and delay getting Christmas trees to consumers.

When he signed the bill into law, California Gov. Gavin Newsom said AB 5 would help reduce the number of workers who were wrongly classified as 'independent contractors, rather than employees, which erodes worker protections like the minimum wage, paid sick days and health insurance benefits."