In 1890, James Edgar, owner of a department store in Brockton, Massachusetts, had a problem. Christmas shopping wasn't really a thing yet, and he needed a way to get families into his store during December.
So he came up with an idea: he would dress up as Santa Claus himself and invite children to come tell him what they wanted for Christmas. Not in a parade, not at a community event—inside his store, surrounded by merchandise their parents could buy.
It was pure marketing genius. Parents brought their kids to see Santa, and while they were there, they browsed the shelves and made purchases. Edgar's store became packed with families every day in December. Other store owners noticed.
Within a few years, department stores across the country were hiring men to dress as Santa and sit in their stores during the holiday season. Macy's famously started their tradition in the early 1860s with store Santas, but it was Edgar who popularized the specific idea of children sitting on Santa's lap to tell him their wishes.
The timing was perfect. The late 1800s was when the modern image of Santa Claus was being solidified in American culture—the red suit, the jolly demeanor, the North Pole workshop. Department stores capitalized on this by making Santa "real" and accessible.
By the 1920s, seeing Santa at the department store had become an expected part of Christmas. Stores competed to have the most elaborate Santa displays, the longest lines, the most authentic-looking Santa. It became a status symbol for stores and a family tradition for shoppers.
But here's what makes it brilliant: the experience itself is free, but it plants the seed for spending. Children tell Santa exactly what toys they want, parents overhear, and those items are conveniently available in the toy department just floors away.
The photo packages came later, in the mid-20th century, as another revenue stream. What started as a free marketing attraction became its own profitable business. Now families pay $30-50 for a single photo with Santa—on top of whatever shopping they do.
Today, the professional Santa industry is worth an estimated $1 billion annually in the U.S. There are Santa training schools, Santa booking agencies, and professional Santas who make six figures during the holiday season working at high-end malls and corporate events.
The wildest part? We all know it's a marketing tactic, and we do it anyway. Parents spend hours in line and pay for overpriced photos because the tradition has become so ingrained that skipping it feels like robbing your kids of a "real" Christmas experience—exactly what James Edgar bet on 134 years ago.