Decreased sales anticipation predicted - Decreased Number of Holiday Tree Vendors
Some Christmas tree suppliers in Brandenburg anticipate fewer buyers this year and are compelled to trim expenses. "We're reducing our sales outlets from 100 to 50," stated Christian Mai, overseer of Werder Tannenhof. Last year, less people visited the plantations to pick their own tree.
Mai attributed the decrease to the surge in fuel prices. People were thinking thrice before venturing far for a tree. Moreover, producers were faced with higher costs due to the hike in fuel, plant protection, and fertilizer prices, as well as the increment in the minimum wage. The scarcity of labor was another hurdle. It was challenging to locate dependable and motivated sellers for the stands.
Due to these factors, Christmas tree suppliers decided to reduce sales. Similar actions were being taken by producers across and beyond Brandenburg.
Customers will have to dig deeper into their pockets
"Everyone is sharpening their pencils," said Mai, who is also on the executive board of the Federal Association of Christmas Tree Producers. He manages a plantation in Thuringia spreading over 40 hectares, besides the one in Werder where 80 hectares of Christmas trees grow.
Holger Zahn, CEO of Späth'sche Baumschulen, also reported a rise in transport costs, leading to a 5% price hike for trees this year. Customers could anticipate paying around 40 euros for a top-notch tree between 1.25 and 1.50 meters, and about 50 euros for one between 1.50 and 1.75 meters. He attributed the increase to fuel prices, toll charges, and minimum wage.
According to Zahn, the nursery, situated in Berlin, cultivates Christmas trees on 20 hectares in Brandenburg, but not just Christmas trees. In total, 60 enterprises grow Christmas trees on 600 hectares.
Like Werder Tannenhof, Späth'sche Baumschulen didn't indicate any weather-related losses due to adequate rainfall. However, they also faced a shortage of temporary workers. Another challenge faced by many business owners in the industry, but resolved in Zahn's company, was finding someone to carry on the business.
Despite customers spending less on gardens and Christmas due to inflation and other purchases, Zahn remained "cautiously optimistic" about the impending season.
Christian Mai shared Zahn's optimism for the season. Not just because the weather was favorable this year and there were no harvest losses, but also because he believed that many people would still buy a tree, although not as many as in the COVID years when many people had to stay indoors.
In response to the financial pressures, Werder Tannenhof, led by Christian Mai, will reduce the number of sales outlets from 100 to 50. Due to these circumstances, the salesman at these outlets might need to adapt their strategies to maintain business.
