What the fuck is wrong with my Christmas tree?

[Moonflower12]

We bought a potted tree from the local garden centre at the beginning of December. It is in its drainable pot within a larger pot with no holes. I have watered it well but it is really dropping it's needles and appears not to be drinking the water? The water in the outer pot doesn't seem to have gone down?
What can I do?

Stop watering! I'd guess you've overwatered and are drowning the roots. Potted trees don't need anywhere near as much water as cut trees.

I wonder if they cut too much root off to get it in the pot?

I'd get rid of the water in the outer pot

It may not be your fault.
Cynically, some garden centers and tree suppliers used to boil the roots, to make sure a new tree would be needed the next year. Possible?
Or if it wasn't pot grown in the first place (very expensive) most of the outlying fine roots would be cut off in the potting process.

Over watering? Too hot?

Get a stick and poke holes in the soil to loosen it up and see how soggy it feels?

I've watered my tree maybe 2 or 3 times total since the start of December and it's barely dropped.

So the poor thing is doomed to a lingering death? Oh no.
I'll take the water out of the outer pot now and see how the poor thing fares.
I am desolated to discover I'm a Christmas tree Murderer!

Was it potted = chopped off and planted in soil. These will never grow or actually pot grown? Pot grown are the only ones that last and can be replanted.

Roots need air to live; they shouldn't be sitting in water. So you shouldn't see any water sitting in the outer pot - the outer pot is just to catch any extra water that dribbles out from the inner pot when you water.

Drain the outer pot and see what happens, but it may be too late.

Update-
I moved the tree to empty the water out of the pot and I swear, every single needle fell off. Poor tree I had definitely killed it.
I went to Aldi for some mince pies to get over the trauma and they had trees! So I grabbed the better of the 2 left and took it to the till, where it was £2.99-bargain. I then walked it home and caught the train with it. Much to the amusement of everyone I encountered. So if you saw a5 foot person with a 6 foot tree walking along chances were it was me!