Local discount retailer Wise Buys – where all the merchandise is priced at $9.98 or less – has tapped into the bargain-hungry consumer mood with live Christmas trees priced under $10.
The response: Wise Buys' two outlets in Roseville and Citrus Heights have sold 30,000 fresh-cut live trees since Thanksgiving.
"We did the math and discovered that we're selling fresh-cut Christmas trees at a rate of one every 30 seconds," said Wise Buys co-founder and CEO Gary Cino. "That kind of stunned us."
It likewise stunned Rick Dungey, a spokesman for the Chesterfield, Mo.-based National Christmas Tree Association. "That's an incredible number in any market," he said.
Cino, who founded 98 Cent Clearance Centers in North Highlands in 1985 and subsequently sold it to Dollar Tree Stores Inc. in 1998, said he tapped into his wide network of merchandise-liquidation sources to get the trees.
Cino's trees come from multiple tree-growing operations in Oregon, where he has a partner who consolidates the shipments. About 75 percent are Douglas firs, and there are also silver tip and noble firs. Even 10- to 14-foot trees arriving on some truckloads are sold for only $9.98.
"It's all supply and demand," Cino said. "Right now there's an abundance of trees (in Oregon). It's a double-whammy for growers, because they've also seen the value of their land drop.
"The growers are facing hard times in the recession and get less for the product they're growing. The reality is that when we buy these Christmas trees, we help balance out their inventory. … And obviously people are (more) willing to spend 10 bucks rather than $50 or more for a Christmas tree."
At less than $10, Cino's trees are far below the average price for a live Christmas tree, which according to the tree association was $40.92 in 2009.
Dungey said sales of trees this year have actually been strong despite the sluggish economy.
"We track sales nationwide, and they've been pretty consistent," he said.
"Studies have shown that, in good times and bad, people are still willing to spend money on a real Christmas tree at this time of year."
Richard Siebrecht, co-owner of Primrose Resources Management Co. in Nevada City, has been selling Christmas trees for 35 years. He said his live tree sales have been robust: "Despite the conditions, our sales this year are comparable to any of our good years."
Siebrecht said growers in his territory have mutually agreed not to raise prices for the past four or five years, for fear of driving customers away. But they haven't cut prices, either.
"For a quality tree, you're looking at about $60," he said.
Shoppers at Wise Buys in Citrus Heights this week were looking for a decidedly lower price point.
Mary Ann Peterson of Citrus Heights said, "The quality of these trees is equal or better than what I've seen at other (local) places … and for less than half the price."
Jessie Jones of Orangevale said her $9.98 tree "will allow my family to have a real Christmas. We're counting our dollars. … We can't afford to pay $30, $40, $50 for a tree."
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