The fact that consumption is recovering against the background of 2020 and people are ready to spend more on the upcoming Christmas holidays is a good sign. But they may be unpleasantly surprised by the rapid rise in commodity prices.
The last “victim” of rising prices was the Christmas tree. Some large sellers of Christmas trees warn that their prices are likely to double due to rising transportation costs, according to CNN Business.
“We have to raise prices. For Christmas trees, the average price increase will be about 20%,” said McHarman, CEO of one of America’s largest retailers, Balsam Hill. The California company earns more than $ 200 million a year from the sale of Christmas trees and other products in the US market.
“Even such an increase will not cover our costs, as this year they are 300% higher per container,” he added.
The situation is no different for the National Tree Company, which is the largest seller of artificial Christmas trees and Christmas decorations, and is also a supplier to such giants as Walmart, Target and Amazon. At the same time, his leadership expects a much stronger season compared to 2020.
“We expect that the demand for our products will be 25% higher than last year. According to our forecasts, this season we will sell from 1.5 to 2 million trees,” explains the company’s CEO Chris Butler.
However, he added that their stocks for the Christmas holidays decreased by 10% compared to previous years. Due to the deficit, prices are expected to increase by 20-25%.