A pallet skirt for covering a stack of pallets on which product is supported and displayed. The skirt has a shipping configuration wherein the perimeter and height of the skirt are approximately the same as the perimeter and height of the product, and a display configuration in which the perimeter and height of the skirt are expanded to cover the stack of pallets. Pleated folds in two corners of the skirt enable its perimeter to be contracted for the shipping configuration and expanded for the display configuration. A horizontal score in the side walls enables the side walls to be folded to reduce the height of the skirt for the shipping configuration and to be unfolded for the display configuration. A horizontal flange on the top edge of the skirt covers the marginal edge of a pallet on which the product is supported during display.