Holiday Decor Surges in Popularity as Consumers Cut Back on Gift Spending
For the Milam family in Dallas, the front lawn has transformed into a winter wonderland, complete with a mini golf course that has become a neighborhood attraction. Visitors arrive daily to admire the holiday decorations, and families even borrow a club to try their hand at the festive putting course. For Mike Milam, the joy is not just in the decorations, but in the experience it creates for both children and adults.
Since the COVID-19 pandemic, elaborate holiday displays like those by the Milams have grown in popularity, especially as consumers prioritize decorations and experiences over traditional gift-giving. According to Deloitte’s annual holiday spending survey, shoppers are expected to reduce their gift purchases by about 3% this year, but spending on non-gift items, especially holiday decorations, is projected to rise by 9%. On average, survey respondents plan to spend $181 on home-related decor, which represents a 22% increase compared to last year and nearly 60% more than in 2019.
Retailers like Home Depot, Walmart, Target, Dollar General, and Dollar Tree have all capitalized on this trend, offering a wide range of seasonal decor to attract budget-conscious shoppers. Target, for example, has seen higher sales of accessories like frames, candles, and vases, while Dollar General has noted positive responses to its Halloween and other holiday-themed decor. These sales trends suggest that, even if consumers are pulling back on gift spending, they are still eager to create memorable holiday experiences through decorations.
However, not all companies are experiencing the same boost. The National Tree Company, which sells artificial Christmas trees and other decor, has seen slower sales in recent years after a surge in 2020 and 2021. CEO Chris Butler pointed out that consumers typically replace their trees every five to six years, and many have extended the life of their pandemic-era purchases due to financial pressures. Meanwhile, Home Depot has responded by offering more affordable holiday decor options, including lower-priced artificial trees and figurines under $40, to cater to cost-conscious customers.
Walmart, on the other hand, has embraced viral trends, such as the large white nutcracker that sold out last year. Despite its success, the retailer still faces challenges in keeping its holiday decor inventory stocked, as demand for certain items like the nutcracker has far outstripped supply.
Despite these challenges, some families, like the Milams, continue to invest in creative holiday displays. For the Milams, who spent about $1,000 to create their mini golf course and other yard decorations, the experience is about more than just spending money. They crafted many of their decorations themselves using supplies from Home Depot, turning it into a family project. The family also bought an eight-foot Christmas tree for $129 and a plastic Christmas chicken for $20, but most of their decorations are recycled from previous years.
Mike Milam, however, has become more cautious about his spending in recent years. Between rising costs for food and utilities, he’s opted to reduce spending on gifts for his kids and instead focus on creating experiences and memories. The project has also allowed his children to learn new skills, such as painting and using tools, which adds an extra layer of meaning to the holiday festivities. The Milams’ front yard is filled with a variety of themes, including Nintendo’s Super Mario and a holiday version of the classic movie E.T. the Extra-Terrestrial.
Though the Milams may spend less on gifts, they continue to put significant effort into their holiday decor, with plans for future themes already in the works. Mike Milam is committed to keeping up the tradition as long as his family remains involved and eager to participate.
