Costco trimming its Christmas offerings as consumers pull back on spending

Costco says it has been adapting to changing consumer habits and priorities, which includes a 'thinned down' Christmas display in stores and larger displays for other items.

Fall and holiday shopping is going to look a little different in stores like Costco heading towards the end of 2025, as some big retailers say they’re cutting down on seasonal offerings to focus on essentials.

Depending where you shop, this could mean fewer items like Christmas trees and holiday displays.

Costco says it has “thinned down” its seasonal offerings, especially in-store, in response to customers pulling back on spending for non-essential items.

“(Shoppers) remain very choiceful in their spending on discretionary items,” said Gary Millerchip, Costco’s chief financial officer, speaking during an earnings call to investors on Sept. 25.

“(We) really had to evaluate all the discretionary items — the toys and the trim and the decorations and those kind of things and made decisions based on the necessities,” added president, CEO and director Ron Vachris at Costco during that same earnings call.

“Christmas trees, we skimmed that. We really thinned down that whole category and down a lot of the additional seasonal areas as well.”

Costco says its latest reporting quarter saw sales increase by eight per cent, and its membership base grew by more than six per cent compared to last year.

Although Costco says they still plan on stocking seasonal items, including reusable Christmas trees, decorations, and gifts like toys and electronics, this new approach means there may be fewer options available and smaller displays for customers to see in-store.