The first department store Santa Claus is often credited to James Edgar, who, in 1890, arranged for a live Santa Claus to entertain children at his store, Edgar's Department Store in Brockton, Massachusetts. However, there are differing opinions and claims as to who was actually the "first" true department store Santa Claus.

Regardless of the exact origin, the concept of a store-based Santa Claus gained popularity and became an annual tradition in various locations across America during the late 19th century. Department stores began to feature a person dressed as Santa Claus, who would interact with children, listen to their holiday wishes, and add a festive touch to the shopping experience during the Christmas season.

In 1890, Edgar's decision to host a Santa Claus at his store reportedly began as an impromptu solution when the scheduled Santa failed to appear. Edgar, eager to provide a delightful experience for young visitors to his store, recruited a local man to dress up as Santa Claus, setting the stage for what eventually became a widespread tradition in retail stores.

The depiction of Santa Claus evolved over time, drawing from various influences, including Clement Clarke Moore's poem "A Visit from St. Nicholas" (commonly known as "'Twas the Night Before Christmas"), published in 1823, which significantly contributed to the modern image of Santa Claus.

The tradition of a department store Santa became increasingly popular and expanded to many other stores across the country, solidifying Santa Claus' role as a beloved holiday figure associated with gift-giving and spreading cheer during the Christmas season. While Edgar's Department Store is often credited as an early adopter of this tradition, the concept of a store-based Santa Claus became an enduring tradition embraced by various retail establishments.