Elves (1989)

"They're Not Working For Santa...Anymore"

While conducting a pagan ritual in the woods with her friends, Kirsten inadvertently awakens the spirit of a demonic Christmas elf involved in a neo-Nazi plot to bring about the master race. After the rent-a-Santa in her department store is murdered, an unemployed, alcoholic ex-cop takes the job and the two set out to unravel the mystery.