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Still, consumers continue to prioritize holiday traditions while paying close attention to household budgets.
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Inflation, along with higher freight costs, is putting pressure on both consumer wallets and merchant margins this Christmas. The impact is being felt by artificial greenery supplier National Tree Company and their retail partners as shopping behavior continues to evolve, according to the company’s recent consumer survey report.
The company also found that consumers are increasingly using AI tools to research their purchases and are visiting stores less, yet the fundamental traditions of the season are holding firm.
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The number of households using a second tree is up, even as a greater proportion of shoppers are setting their primary tree budgets at less than $200.
Chris Butler, CEO of the National Tree Company, has broken down the company’s latest consumer sentiment data, the impact of diesel prices on the peak season supply chain and how the prevailing economic uncertainty is reshaping the retail landscape for the holidays.
Sourcing Journal: What is impacting consumer spending this holiday?
Chris Butler: Economic uncertainty and higher everyday costs continue to influence household spending decisions. According to our Consumer Holiday Sentiment Survey, 45 percent of consumers expect to spend less or nothing at all on holiday decor this year compared to last year, highlighting the importance of value and affordability as shoppers plan for the season.
SJ: How, when and where are consumers shopping?
C.B.: We’re seeing consumers use a wider mix of tools when researching holiday decor purchases. Our survey found nearly a 50 percent increase in consumers reporting the use of AI tools during their shopping journey compared to last year.
At the same time, fewer consumers reported visiting stores to see and compare trees in person, suggesting shoppers are becoming more comfortable researching products digitally before they buy.
SJ: Can you share some of the key findings from National Tree Company’s 2026 consumer survey?
C.B.: The biggest takeaway is that holiday decorating remains an important part of tradition despite ongoing financial pressures. More than 80 percent of households report displaying at least one Christmas tree. We also found continued growth in multi-tree households, with the average number of trees per household increasing by more than 20 percent since last year.
Consumers are increasingly placing secondary trees throughout the home, reflecting a broader trend in holiday decor.
SJ: What is your estimate on the average amount consumers intend to spend on Christmas decor this year?
C.B.: Consumers continue to prioritize holiday traditions while paying close attention to household budgets. Compared with last year, a greater share of shoppers expect to spend less than $200 on their primary Christmas tree purchase. While spending intentions have shifted toward more affordable price points, the majority of respondents still plan to purchase a tree this season.
SJ: What are some of the holiday supply chain trends you are seeing or anticipating?
C.B.: With increasing gas prices—specifically diesel at over $6—we anticipate tighter profit margins for online retailers. Freight and transportation costs continue to affect the economics of getting products to consumers, making operational efficiency especially important during peak holiday demand.
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