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From 'Grinchmas' to chestnut roasts, these rural towns make the holidays central to their economy

A county courthouse, lit up, shines brightly in Minden, NE, in December 2025. The yearly tradition has given Minden the title
Courtesy of the City of Minden
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Courtesy of the City of Minden
A county courthouse, lit up, shines brightly in Minden, Nebraska, in December 2025. The yearly tradition has given Minden the title of "The Christmas City" and is one of the reasons visitors flock to the small town each holiday season.

Winter holiday festivals have become a regular way to grow revenue for America’s smallest towns. And with more people shopping online, those events are key to pulling people away from their screens and into stores.

The air temperature in Garrison, North Dakota, is barely above zero degrees. And yet, the town’s wide main street is filled with bundled-up shoppers galore perusing the brightly lit storefronts.

Wally, the Walleye, fashions a top hat while greeting visitors along the wide main street of Garrison, ND on Saturday, Dec. 13, 2025
Tadeo Ruiz Sandoval
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Harvest Public Media
Wally the Walleye sports a top hat while greeting visitors along the wide main street of Garrison, North Dakota, on Saturday, Dec. 13, 2025.

Snowflakes are lightly coating the statue of a large Walleye, now sporting a top hat — worn specially for this weekend’s annual Dickens Village Festival. For more than 30 years, Garrison’s population of 1,400 has celebrated Charles Dickens’ works, drawing visitors from all over the region.

Maya Anderson, for example, traveled here with a friend from the Twin Cities, a full eight hours away. Wearing 1800s-era garments, they’re huddling around a dimly lit patio heater before exploring the town’s stores.

She says shopping at the usual big-box brands can be predictably safe, which takes away from the adventure and joy of discovering something new.

“There's a lot of times where I've sat around, and I'm like, ‘You know what? I want to try something,’” Anderson said. “I want to try a local business. I want to see what someone does differently.”

Her purchases will be among the many that help keep the Garrison community vibrant and growing.

Maya Anderson, left,
Harvest Public Media
Maya Anderson, left, poses with Laura Ellen, whom she had just met at the Dickens Village Festival in Garrison, North Dakota, on Saturday, Dec. 13, 2025.

It’s not just Garrison. Nearly every state has a handful of rural out-of-the-way towns that drape their downtowns with lights, put on parades and festivals and heat up the hot chocolate in a bid for holiday visitors. These outside dollars are critical for such towns’ economies. But as online shopping grows, towns are having to do ever more to bring people’s business back to local economies.

In Garrison, those attractions look like a double-decker bus offering town tours, reindeer visits and a local production of “A Christmas Carol.”

“The big battle that we're up against is the big boxes and then shopping online with the Amazons and the Walmarts and the Targets and all those,” said Dick Messerly, president of the Dickens Village Festival. “Because people find that so convenient, so you've got to give them some other reason to come here.”

The festival is one of many events the town has put together to attract those outside visitors. And during this holiday festival, they get many of their tourists, whose purchases help the town maintain its streets and historic buildings.

Messerly says that while in the past, farmers and other rural communities would’ve supported the town’s economy year-round, attracting outsiders for special events is now critical.

“A lot of the small towns have a hard time keeping their main street open and their businesses going,” he said. “So, with all the events year-round, that sure helps our retail sector.”

‘They’re coming for an experience’

Online shopping isn’t just more convenient — it’s becoming more popular.

Salesforce, a commerce company, reported that digital sales for November and December in the U.S. are expected to reach $288 billion. That’s a 2% year-over-year increase.

As more people go online to shop, towns are getting ever more creative to pull them away from their screens.

During Grinchmas Day, families dress up for free treats and do free crafting at the shops in Caledonia, MO.
Courtesy of Old Village Mercantile
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Courtesy of Old Village Mercantile
During Grinchmas Day, families dress up for free treats and do free crafting at the shops in Caledonia, Missouri.

“People are coming for an experience with their family,” said Nina Gilliam, a business owner and village board trustee in Caledonia, Missouri.

Caledonia — which is 80 miles southwest of St. Louis— has a population of barely over 130 people, so getting people to visit is important to keep its revenue going. And Gilliam says that simply having cute in-person stores just isn’t enough anymore.

“People look online for an experience with their family,” she said. “If you don’t have it, they’re going to go somewhere else.”

With a three-digit population, Caledonia’s shop-owners know they can’t compete against the big box retailers and online giants, at least not alone. They have to work together.

The town’s businesses pool their profits to invest in local events that grow their foot traffic. Gilliam said while teamwork is the norm, they still get the occasional Grinch.

“[But] being the Hallmark town, kind of turns the Grinch and grows the big heart,” she said. “Because they seem not to Grinch it up very much after they get into the village. It's a culture we have, and we all love it.”

This year, each store offered free chocolate for anyone who stopped in, even if they didn’t buy anything. And all of the free offerings leave more space in visitors’ wallets to spend.

Staying true to a town’s identity

Some towns are just made for attracting tourists at Christmas.

Santa Claus, Indiana — named by its residents in the 1850s — is proud of its namesake.

The Santa Claus Christmas Store is among the many attractions that share Santa Claus, IN's town pride.
Courtesy of the Town of Santa Claus
The Santa Claus Christmas Store is among the many attractions that share Santa Claus, Indiana's town pride.

The town of just over 2,500 people in Southwest Indiana offers chestnut roasts at Santa's Candy Castle, a theme park, a light show and letter writing to Santa at the town’s original post office, which is now part of a museum. Santa, of course, always writes back.

A town named Santa Claus naturally attracts holiday visitors.

It’s an annual tradition for many, according to Melissa Arnold, executive director of the county visitors bureau. But the secret to their success, she said, is staying grounded in their roots.

“I think the town of Santa Claus stays true to its name,” Arnold said. “We are famous because of our name and because of our offerings, but we're not trying to be something that we're not.”

Children can write letters to Santa at the Original Santa Claus Post Office in Santa Claus, IN. Santa, of course, replies.
Courtesy of the Town of Santa Claus
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Courtesy of the Town of Santa Claus
Children can write letters to Santa at the Original Santa Claus Post Office in Santa Claus, Indiana. Santa, of course, replies.

She admits that sometimes people don’t believe the town is a real place.

“It's fun to say you're from Santa Claus, Indiana,” she said, “especially to those unfamiliar, because sometimes they'll kind of hesitate and say, ‘really?’”

Controlling their destiny

Minden, Nebraska, is known as “The Christmas City.”

The town, located about two hours west of Lincoln, is regionally famous for lighting the entire city — from the county courthouse to commercial buildings.

“If you hear just Christmas lights, it's maybe not something that gets you too excited,” said City Administrator and Economic Development Director Michael Krings. “But if you've seen it, it really is kind of breathtaking. The amount of lights and how much is involved in it.”

Krings said a light display alone isn’t enough to become an annual tourist destination. Minden also attracts visitors with its annual pageant, parade and craft fairs.

With a population of just over 3,000 people, Krings said the money visitors spend is critical to the small town, especially for locally-owned businesses. But he said it’s also important to keep the town’s identity and its people a priority.

“It can't be just about trying to bring in visitors,” he said. “It's about doing it in a way that the local people can be proud of it.”

This story was produced in partnership with Harvest Public Media, a collaboration of public media newsrooms in the Midwest and Great Plains. It reports on food systems, agriculture and rural issues.

I'm a reporter at Minnesota Public Radio in the Fargo-Moorhead area and I cover agriculture for Harvest Public Media. You can reach me at truizsandoval@mpr.org.