From trees to decorative chickens, holiday decor could boost retailers as shoppers pull back on gifts

by | Dec 18, 2024 | Business

The Milam family turned its front lawn into a holiday-themed putt-putt course. Going all out on Christmas decorations has become a tradition for the Dallas family.Courtesy: Mike MilamFor the holiday season, the front lawn of the Milam family’s house in Dallas has transformed into a mini golf winter wonderland.Visitors stop by from nearly sunrise to sunset to admire the Christmas decorations — and to borrow a club to play a round of putt-putt themed around Santa, candy canes, snowflakes and more.”You can see not just the excitement and wonderment of kids, but also of adults,” said Mike Milam, a firefighter and father of two.Decking out the front yard has become an annual tradition for the Milam family since the Covid pandemic. The family of four’s elaborate decorations capture a trend that many retailers, including Home Depot and Walmart, have sought to capitalize on in recent years: Some customers are going bigger on seasonal decor, even as they watch how much they spend on other discretionary items.Consumers are prioritizing decorations and experiences over gifts this holiday season, according to an annual holiday spending survey by consulting firm Deloitte. The survey found that respondents expected to spend a little less on gifts this year – down about 3% year over year. But they planned to spend about 9% more on nongift purchases, with most of that jump coming from holiday decorations.The Milam family turned its front lawn into a holiday-themed putt-putt course. Going all out on Christmas decorations has become a tradition for the Dallas family.Courtesy: Mike MilamSurvey respondents said they planned to spend $181 on home-related items, furnishings and holiday decorations, up 22% year over year and nearly 60% more than the pre-pandemic 2019 holiday season.Holiday decor is providing a boost for retailers, even those like Target, Dollar General and Dollar Tree, which have noticed a pullback in other categories.Target’s Chief Commercial Officer Rick Gomez said on an earnings call in late November that customers are “looking for ways to add a little bit of seasonal decor,” which drove higher sales of accessories including frames, candles and vases in the most recent quarter.Dollar General CEO Todd Vasos said on the company’s earnings call in early December that the retailer was pleased by customers’ response to “the discretionary side of Halloween.” He said shoppers’ reactions to that seasonal decor offered “some glimmers of hope” as the dollar store chain headed into the peak of the holiday season.Christmas decorations are for sale at a Home Depot store on November 14, 2023, in Miami, Florida. Joe Raedle | Getty ImagesDecor may not save the holidaysYet holiday decor sales may not look as as jolly as some companies wish.For example, National Tree Company CEO Chris But …

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