How Elf on the Shelf Co-Founder Turns Tradition Into Retail Success

How Elf on the Shelf Co-Founder Turns Tradition Into Success

The Elf on the Shelf is a popular tradition created by Carol Aebersold, Chanda Bell and Christa Pitts of The Lumistella Company in 2005 after the launch of “The Elf on the Shelf: A Christmas Tradition,” a book that includes a Scout Elf and an adoption certificate.

And even during this holiday season, where inflation is causing some financial woes, The Lumistella Company said people are still holding onto the tradition, much like their Christmas trees.

“The current consumer is thoughtful,” Pitts told PYMNTS in an interview. “I don’t think that they are in a position yet where there is panic. People are still out, they’re still spending. They are just more cautious.”

“While consumers are more selective and thoughtful about what they are purchasing, we are still seeing people spending,” she added. “Our season is still fully in flux.”

Pitts said The Lumistella Company is seeing a trend where consumers are purchasing items that are valuable to them instead of trading down to cheaper options. Shoppers are buying essentials, but they are also investing in luxury items if they provide perceived value.

In the industry, there’s no apparent sense of panic, a notable difference from times of economic uncertainty when people are skeptical about the future. Pitts highlighted that consumers continue to spend, but they are slightly more thoughtful about their purchases.

With that in mind, families are continuing their “The Elf on the Shelf” tradition, and new families are starting theirs.

“I believe that there is more of a demand for tradition now than there has ever been,” Pitts said. “There is so much happening in the world that can be difficult and dark. This can weigh on the hearts and minds of parents. A respite for them is something that brings their children joy and magic. We need things that remind us that there is still a sense of wonder in the world. So, I don’t think people are pulling away from tradition at all.”

The Elf on the Shelf Tradition

At the heart of this tradition is the children’s book, “The Elf on the Shelf: A Christmas Tradition.” The narrative introduces Santa’s scout elves, sent to children’s homes to keep a watchful eye on their behavior in the days leading up to Christmas. These mischievous elves are known for their nightly visits to the North Pole to report on the children’s deeds, ensuring that Santa’s naughty and nice lists are up to date.

What sets it apart is the interactive aspect. Families adopt their own Scout Elf, naming it and providing a special place for it to perch each night. The magic unfolds each morning as children wake up to discover the elf’s new hiding spot or playful antics. The tradition fosters a sense of excitement and wonder, creating lasting memories.

One of the unique elements is the adaptability it offers. Families can tailor the experience to fit their own beliefs and values, incorporating the elf into their holiday rituals in a way that resonates with them. This flexibility has contributed to the widespread adoption of the elf across cultures and family structures.

Some celebrants have even made headlines. Take parents who reportedly worked with local police to take their Elf on the Shelf prank to the next level.

A TikTok video, originally posted by user brihorsley6 and later shared on Instagram, showed a young girl and her mom walking to their front door to welcome police officers delivering news, Parade reported.

It appeared that the authorities were trying to identify someone who had entered the family’s previous residence, per the report. The family explained they had recently moved to a new house.

After clarifying to the young girl that they had encountered someone who claimed to know her, the family was guided to a police car, where they discovered an Elf on the Shelf sitting in the back seat, the report said.

The Growth of the Company Since 2005

“When I look at the company’s growth since its inception, I would say we have grown quite substantially,” Pitts told PYMNTS. “We started The Lumistella Company with one product and 5,000 units of it. Since then, we’ve sold over 25 million Scout Elves, Elf Pets and Elf Mates globally since 2005.”

Pitts pointed out that The Lumistella Company is in over 26,000 places across 24 countries and five continents. It works in areas like clothes, games, sweets and more, teaming up with over 75 partners worldwide. It also connects with an audience of 8.5 million followers on social media.

Pitts said The Lumistella Company is now at the top of the Amazon Best Sellers list, beating over 500,000 toys and games on Amazon.

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