WORLD> America
In tough times, Americans cling to Christmas trees
(Agencies)
Updated: 2008-12-20 12:24

GENEVA, Illinois - Beleaguered Americans may have to trim the size of their Christmas tree this year or cut back on gifts to afford one, but few will do without the holiday centerpiece no matter how bad the economy.


Workers unwrap Christmas trees at a Home Depot in Carol Stream, Ill., November 24, 2008. [Agencies] 

Industry insiders from tree farmers to people like Rick Rusin - who sells trees in the corner of a small shopping mall parking lot in the western Chicago suburb of Geneva - say that while consumers are tightening budgets, for them it's business as usual.

"So far sales haven't been the best I've seen, but they're also far from the worst," said Rusin, 26, who is in his seventh year selling trees from Thanksgiving in November to Christmas Eve. "I would say it's just an average year."

"Some people have complained about the price, but I get complaints every year," he added.

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The 500 Christmas trees he has to sell for about $10 per foot stand in several inches of snow waiting for new owners. Despite bright sunshine it is bitterly cold, and Rusin is cheerful, not least because he still has this seasonal work after recently losing a full time job in a warehouse.

"I love this job, it's so much fun seeing how much kids enjoy buying their trees," he said.

While the Christmas tree may be a sacrosanct part of family festivities for tens of millions of Americans, some consumers are expected to economize on other things to be able to have a tree or downsize to a smaller tree or cheaper variety.

"Some people may be forced to cut back on gifts to afford a tree," said Bill "Captain Jack" Dennis, who runs the online Christmas Tree Farm Network and used to own a tree farm in Iowa. "Others will look for a smaller or less expensive tree."

Last year 31.3 million American households bought real Christmas trees at an estimated cost of around $1.3 billion, up more than 9 percent from 28.6 million households in 2006, according to the National Christmas Tree Association (NCTA).

Fake, or artificial, Christmas tree sales jumped 87 percent to 17.4 million in 2007 from 9.3 million.

NCTA spokesman Rick Dungey said that "over the years we've found the economy doesn't impact tree sales that much at all."

"As a family tradition, it's way too important," he said.

 

As the global financial crisis worsens, sales at most retailers have taken a hit. According to the US Commerce Department, sales at US retailers fell 1.8 percent in November, the fifth consecutive monthly decline.

But despite the bad news, or perhaps even because of it, some argue Christmas tree sales will remain strong.

"People really like traditions in this country," said Catherine Howard, editor of trade publication Christmas Trees Magazine. "And when times are tough people like to cling to those traditions because they make them feel comfortable."

"This industry is very young because 50 years ago people just went into the woods and cut down a tree, so there isn't that much historical data available," she said.

"Some (tree) retailers are certainly going to feel pain, but recent history would suggest most sellers won't be that badly hit."

In Greenville, Michigan, Tom Trechter has been in the Christmas tree business since 1985. The owner of Mathisen Tree Farms sells some 100,000 trees annually and said sales this year were slightly up over last year.

Most of the growth has come for smaller trees of between 5 feet (1.52 m) and 6 feet tall. In previous years, trees measuring 10 feet to 12 feet have proved to be more popular.

"But whether that's people buying smaller trees for smaller homes or people cutting back, I don't know," Trechter said.