Tariffs raising costs for holiday retailers and customers; tree farm trying to compensate

INDIANAPOLIS — Rising costs due to inflation and tariffs could taint “the most wonderful time of the year.” Between gifts, holiday food and decorations, analysts say holiday shoppers are on track to spend more than in years past.

In Greenfield, Lost Forty Tree Farm is trying to help families compensate for higher costs elsewhere. The 40-year-old family business is keeping its Christmas tree prices the same as last year even as they’ve had to pay more in upkeep.

”Our cost to do business has gone way up,” said co-owner Bob Wendt. “It doesn’t matter whether it’s land taxes, insurance, repairs to the tractors, parts to the tractors, herbicides or pesticides or hired labor.”

The farm does what it can to control costs by growing its own trees rather than buying them, but the price of tending to 13,000 trees continues to go up.

”I remember just three years ago I got a new set of tires for the farm truck and it was $900 and this year I got a new set and it was $1,600,” Wendt said.

While they haven’t been impacted by tariffs on imported goods, it’s a different story at Kirk’s Christmas Shop in Carmel. The shop, which has been around for about 10 years, imports just about everything it sells from China. While the shop was able to get some of its merchandise before tariffs hit, it’s largely paying a higher price to stock shelves.

“[Tariffs are] hitting anywhere from 15% to 9% on everything which we have to reflect back in the cost of our merchandise,” general manager Nick Williams said. 

The store hasn’t yet opened for the season, but when it does, everything will start at a 30% off discount to help shoppers at the register.

Meanwhile, the Lost Forty Tree Farm is willing to work with families depending on their budget.

“If you’re interested in an eight-foot tree you can find one on the farm anywhere from $40 all the way up to $160,” co-owner Nathan Wendt said. “It’s just going to depend on what the tree looks like and how expensive your taste is.”

Lost Forty is hopeful that its legacy customers will once again flock to the farm, even as budgets might be smaller. For Kirk’s Christmas shop, which hasn’t been around quite as long, it’s anxious to see how many people get into the shopping spirit.

IU senior lecturer of marketing John Talbott said with layoffs and hard times across the board, retailers may see customers be more intentional with their shopping. 

“It’s a careful Christmas, a careful holiday season if you will, where people just have to be more thoughtful about the choices that they’re making,” Talbott said. 

He said uncertainty, not only during the holidays, but always, is the bane of consumer spending. 

Even though it may be a holiday season like no other, both shops are excited to open in the coming weeks to celebrate with the community.