Kmart's Iwilei store sold Christmas trees for $1 yesterday amid an islandwide glut of trees and just three more days to sell them.

Other retailers also are slashing prices while some are giving away trees with large purchases such as appliances.

Many retailers bought more trees this year than last, expecting strong sales. But rainy days plus news reports of state Agriculture inspectors discovering yellow-jacket wasps and other insects in tree shipments reduced sales.

"People didn't want to deal with the pests," said Christmas Hawaii President Richard Tajiri, who sells trees each year at Ala Moana Center. "Every call I got, customers asked if we had bees and wasps."

Niu Valley resident Julie Young had concerns when she heard of the insect problem. She also said her children have allergies, which is the main reason her family put up an artificial tree last year.

Sales of artificial trees were up 12 percent to 15 percent over last year at Kmart's Iwilei store, said Darcy Taisacan, store coach. He said his store sold out of three different models of artificial trees the day after Thanksgiving.

Hawai'i retailers often have difficulty judging the market for Christmas trees. Last year the number was about right, but in 2005 and 2004, most stores ran out a couple of weeks before Christmas. Some vendors resorted to flying trees in to meet demand.

This year was similar to 2003, when there was a glut and some retailers sold them for as little as $1.

Tajiri closed his Ala Moana Center shop a week before Christmas because of slumping sales. Why keep two or three workers around when they are only selling 10 to 15 trees a day, he asked.

Tajiri said he lost about $50,000 this year. He usually sells about 5,000 trees, but this year it was closer to 4,000 and he gave away, or threw away, about 800.

"We took a beating and we threw a lot of trees away," Tajiri said. "I've been in the business for 31 years and it was the worst ever."

The glut also was evident at Home Depot's Iwilei store yesterday afternoon. The Christmas tree display had few customers, and rows and rows of 6- to 8-foot Douglas firs and Noble firs at full price.

Not all retailers have seen a downturn.

Habilitat, which operates residential substance-abuse treatment programs, said sales at its Kapi'olani Boulevard and Stadium Mall locations were slightly ahead of last year.

Becky Harrison, Habilitat's marketing manager, said the company sold 3,150 of the 3,600 trees that it brought in this year.

At $1, Kmart Iwilei was selling trees quickly but still had some on hand at 6:30 p.m. yesterday.

Wanda Sitani was happy to get one of the $1 trees. The Kalihi resident said her finances have been tight because of health problems she and her husband have suffered this year.

Sitani said her brother usually buys the family a large tree and "really dukes it out real well." But money was tight in his household this year, she said. "I waited until the last minute because we were low on funds," Sitani said. "I'm very thankful for Kmart."

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.

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