Christmas shoppers plan to buy real trees despite higher costs
Nearly one in five people are willing to pay $200 or more for their tree
Expect 'desperation discounting' to hit retail ahead of Christmas: Burt Flickinger
Strategic Resource Group managing director Burt Flickinger and SlateStone Wealth chief market strategist Kenny Polcari discuss how a strong U.S. dollar is factoring into the Fed's next rate move on 'The Claman Countdown.'
Although consumers are paring back their spending this holiday season, many won't give up the luxury of having a real Christmas tree.
According to a recent survey by Trees.com, over half of Americans that plan to celebrate Christmas plan on cutting down on their spending, including putting a budget on gifts, as a result of elevated inflation, which rose 7.7% in October from a year earlier.
However, 7% more Americans will buy a real tree this year compared to a year ago even with elevated costs.
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Nearly one in five people said they are also willing to pay $200 or more for their tree.
Christmas tree farm. (iStock / iStock)
Tim O' Connor, executive director of the National Christmas Tree Association, told FOX Business that real trees have become a "central part" of holiday décor for Christmas despite the economic environment.
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O'Connor projected that prices for such trees won't go up "dramatically," although given inflation, shoppers can expect at least a 5% to 10% increase in price.
Growers have faced skyrocketing costs, which include fuel rising 70% and fertilizer surging 300% in the last year, according to O' Connor.
Fresh cut trees at a Christmas Tree Farm. (iStock / iStock)
The good news, he said, is that there are trees even for those on a budget.
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Trees vary in price depending on its appearance, size and the type of tree you buy, he added. For instance, trees that aren't "perfect on all sides" are going to cost less.
"We always say this with sincerity, there is a tree for everyone," he said, "There are trees that are lower priced."