'The Elf on the Shelf' brand's magical story started with co-founder's family and its own Christmas elf
Christa Pitts reveals the Cinderella story behind The Elf on the Shelf and how it became a worldwide Christmas tradition
Santa’s sneaky elves donned in red suits with crisp white collars have been making chocolaty messes on kitchen counters and dangling dangerously from Christmas tree branches — all while unsuspecting children are sleeping.
"Families and children look to us to be the voice of the North Pole," Christa Pitts, founder and co-CEO of the Lumistella Co., maker of The Elf on the Shelf, told FOX Business.
"They write us, they call us, they send us letters, they contact us through social media — any way they feel that they can have that one-on-one connection with the North Pole," Pitts said.
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More than 25.5 million The Elf on the Shelf scout elves have been causing mischief and magic in homes across the country and the world.
And the tradition grew in 2023 with a new character, Noorah the Arctic Fox, and a new TV series, "The Elf on the Shelf: Sweets Showdown," currently airing on Food Network.
Lumistella Co. founder and co-CEO Christa Pitts spoke with FOX Business about the successful The Elf on the Shelf franchise that's been made a holiday tradition in households all across the world. (The Lumistella Co. / Fox News)
Since 2005, the global sensation with elf prints in 24 countries has grown out of one family tradition that started in Atlanta.
"My mom had a small elf in her childhood and her mother, my grandmother, used to say, ‘You know, you guys better cut it out because that elf is watching.' It worked for Santa, and it was just living in the Christmas tree," Pitts said.
When Pitts’ mother, Carol Aebersold, had children, she continued the tradition and added to the excitement by giving the elf a name: Fisbee.
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She also created stories around its appearances each day leading up to Christmas.
"We would race out of bed every morning to go find him," Pitts said.
Under Pitts’ leadership, 25.5 million The Elf on the Shelf scout elves, pets and mates have been sold in 24 countries. (The Lumistella Co. / Fox News)
"He was always in a new place. And there were rules. I mean, we weren't allowed to touch Fisbee because he could lose his magic. We could talk to Fisbee and tell him anything we wanted for Christmas. So, it was just those good positive reinforcements that were part of our childhood."
When Pitts’ twin sister, Chanda Bell, had her first child, she wanted to continue the tradition in her own home but said she could not find anything on the market like her treasured Fisbee.
Then one day in 2004, Bell and Aebersold, both former schoolteachers, sat around the kitchen table and penned the story of The Elf on the Shelf.
"They were both very passionate about children's literacy and being educators, they understood that world of young minds," Pitts said.
"The two of them together were a real dream team, in terms of knowing how kids like to interact with their materials."
Christa Pitts (left) joined her twin sister Chanda Bell and their own mother to write the book, "The Elf on the Shelf," which evolved into a successful global franchise. (The Lumistella Co. / Fox News)
Pitts, a former QVC program host and branding expert, teamed up with her mom and sister to develop The Elf on the Shelf into a book and character combo — a journey that wasn’t all magic as it took grit, determination and plenty of rejection.
"We had been turned down by everybody," Pitts said. "We had the book and we had it illustrated, but nobody wanted it. No one saw value in it."
"We were rejection central," she added. "We heard everything from, ‘Kids don’t like rhyming’ to, ‘It’s destined for the damaged goods bin’ and everything in between."
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The team decided to self-publish.
"We actually understood this concept from the mind of a child and we believed in it. From an entrepreneurial standpoint, it's one of the things that sets you apart, which is you have to believe in your business or your idea because no one else is going to do it for you."
The Elf on the Shelf has become a holiday tradition that exists in homes all around the world. Sisters Chanda Bell (left) and Christa Pitts are shown. (The Lumistella Co. / Fox News)
Pitts said she and her family had to find the cash to get the idea off the ground.
They turned to proceeds from the sale of her house, money from her parents' 401(k) — (d)and the rest was charged to credit cards.
"And that's how we got our first The Elf on the Shelf units," she said.
The minimum order was 5,000 and by the fall of 2005 they had their first book signing.
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"We started very small at a few local Christmas markets," Pitts said. "We had to tell every single person that passed by what this was because there was no frame of reference for this idea."
Pitts said they sold all 5,000 units that year, but it wasn’t easy.
"It was waking up at the crack of dawn and then not going to bed until late and getting the website together," Pitts said.
"We had no money," said Pitts (right). "It was proceeds from the sale of my house in Pennsylvania, combined with a little bit of money from my parents' 401(k) and then my sister and her husband had amazing credit and they put the rest on credit cards (The Lumistella Co. / Fox News)
"The more we sold, the more we continued to believe."
Every penny they made went immediately back into the company to support the next year and the next, Pitts said.
They did not make any money for three years — but that didn't stop them.
"I think there's always going to be an element of optimism in any successful entrepreneur story," Pitts said.
"If you took everyone who told you ‘no,’ or was a naysayer or doubter and believed them, you would never conquer your barriers," she said.
From a business perspective, Pitts said a growth mindset and a willingness to evolve are key. (The Lumistella Company / Fox News)
"The obstacle is kind of the way entrepreneurial mindsets work. There's always going to be an element of optimism. That said, the challenges are enormous."
From a business perspective, Pitts said a growth mindset and a willingness to evolve are key.
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"One of the great opportunities for any entrepreneur is that you can move faster and be more nimble than any established brand or company out there," Pitts said.
The Elf on the Shelf brand now includes new clothes, characters, movies, TV shows and more. The sisters are pictured above. (The Lumistella Co. / Fox News)
"The larger they become, the more difficult it is to be a disruptor or a change maker," she added.
"I had a dear friend of mine say to me one time, ‘You guys improved Christmas. You made it better. You've improved a holiday."
The Elf on the Shelf tradition grew in 2023 with a new character, Noorah the Arctic Fox, and a new TV series, "The Elf on the Shelf: Sweets Showdown," currently airing on Food Network. (The Lumistella Co. / Fox News)
The Lumistella Co. has about 115 full-time employees, scaling up with part-time and temporary workers during the Christmas season.
The company is still based in Atlanta — and Pitts and the team aren’t resting on their snow drifts.
New characters and content continue to connect Santa and the North Pole to children everywhere.
The book, "Extraordinary Noorah," reached No. 1 on Amazon in the first week of its release. (The Lumistella Co. / Fox News)
Pitts’ advice for budding entrepreneurs is simple.
"Don't be afraid to follow your dreams," she said.
"We are the classic example of how if you work hard enough and you focus and you are very clear about what you're wanting to accomplish and why, with persistence and optimism, you can do it."
The newest pet to join "The Elf on the Shelf" pack is Noorah. The book and the stuffed animal are available for purchase on Amazon. (The Lumistella Co. / Fox News)
Relationships, Pitts added, are a key component to building a business.
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"Get on a plane, get in your car, go travel, meet people — because typically people are willing to help you out," she said.
"You just have to be willing to spend time with them and to talk about what it is you're trying to do."
Pitts' advice is to put all of your ideas on paper and build strong relationships with people inside and outside your own family. (The Lumistella Co. / Fox News)
That includes family relationships, Pitts said.
"We have a family that’s wild on trust and love and an incredible mom who told us we could do anything," Pitts said.
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"We knew from the beginning of our existence just how magical this imagination and the magic of the season can be if you lean into it. And it's not about Santa per se, but it's about the spirit of the season," she said.
"Kindness, generosity, thoughtfulness, giving. Those are the things that drive us. Those are the things that I think make this time of year so special. I think Santa's proud of us."
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