From Trees to Decorative Chickens: How Holiday Décor is Lighting Up Retail Sales

As shoppers dial back on gift expenditures this holiday season, retailers like Walmart and Home Depot are banking on a surge in seasonal décor to keep their spirits high and their sales healthy. Despite tightening budgets elsewhere, the festive spirit still finds a way to shine through, with consumers planning to spend approximately 9% more on non-gift items this year, as highlighted in Deloitte’s annual holiday survey.

Urban festivities light up the season

The Milam Family’s Festive Transformation

In Dallas, the Milam family’s front lawn has morphed into a holiday-themed putt-putt course.

“You can see not just the excitement and wonderment of kids but also of adults,” said Mike Milam, who has been spearheading this creative endeavor since the pandemic.

Their elaborate decorations, including themes around Santa and candy canes, reflect a growing trend among families who prioritize experiences and festive ambience over traditional gift-giving. As interest in extravagant decorations rises, retailers are responding in kind, hoping to capitalize on this newfound enthusiasm.

Shifts in Spending Habits

Deloitte’s survey reveals that while respondents intend to cut back on gift spending—projected to decrease by around 3%—they plan to invest about $181 combined into home-related items and, notably, holiday decorations. This marks a staggering 22% increase compared to last year and a remarkable 60% more than pre-pandemic levels.

Sparkling décor capturing the spirit of the season

Retailers like Target and Dollar Tree are reporting some positive trends within the holiday décor sector, as these companies acknowledge a decline in other categories. Despite challenges, Target’s Chief Commercial Officer, Rick Gomez, emphasized an increase in accessory sales. Consumers seem to seek out “a little bit of seasonal decor,” which has fueled demand for various decorative items this holiday season.

Challenges for Major Holiday Décor Sellers

Not all retailers are flying high; some companies, like the National Tree Company, have experienced a decline in sales post-pandemic. Chris Butler, CEO of the company, noted that after remarkable sales in 2020 and 2021, they now anticipate stagnant year-on-year sales. Many consumers are holding onto their artificial trees longer—typically around five to six years—due to pressure from inflation and financial constraints.

A striking display capturing holiday cheer

This cautious approach encompasses a growing trend among consumers, who opt for longevity and sustainability over frequent replacements. The desire to prolong the life of existing decorations seems to resonate, given the new financial landscape many families are navigating.

At Walmart, popular items like oversized nutcrackers and decorative bows are seen as staples for the season, with new products debuting in response to social media-inspired trends. Last year, a massive white nutcracker quickly sold out, prompting Walmart to double its inventory this year.

DIY Decorations: A Family Affair

Interestingly, many families, like the Milams, are embracing DIY endeavors to save costs while maximizing holiday cheer. Mike Milam revealed that they spent around $1,000 to create their front yard mini-golf course, largely crafted from recycled materials and supplies sourced from Home Depot. This unique blend of creativity and frugality has fostered invaluable family bonding while still bringing joy to passersby.

A vibrant DIY holiday display from the Milam family

By utilizing many existing decorations and crafting new ones, the Milam family aims to find value without sacrificing the joy of festive decoration. Likewise, Mike expressed a growing preference for experiences rather than material gifts as his children engage in various projects: “I’d rather have experiences than stuff.”

Conclusion: A Season of Resilience and Creativity

As families navigate the complexities of today’s economy, the holiday season emerges as a time for resilience, creativity, and festivity. Despite shifting traditions in gift-giving, the love for holiday décor is a strong testament to how families are adapting, drawing joy not only from the decorations themselves but also from spending quality time together.

The Milam family’s creativity represents a larger trend that retailers are eager to innovate around. In a season that often comes with financial pressures, it is inspiring to see how communities come together to celebrate in new ways.

Holiday spirits remain elevated despite economic challenges