Costume shops struggle with rising costs as tariffs hit Halloween sales

In the United States, the recent tariff increases have created significant challenges for costume retailers just before Halloween. Resulting from these tariffs, costume shop owners in Metro Atlanta, such as Angie McClean of Psycho Sisters, report increased wholesale prices, which are ultimately affecting retail pricing. McClean indicated that wholesale prices have risen significantly—a cat suit that once sold for about $48 now requires a selling price of $78 due to a 15% tariff added to her invoices. The unpredictable nature of the tariff system, according to McClean, has led her to absorb many of the costs rather than passing them on to customers, hoping to keep her prices competitive. Ronnell Tomedonou, who runs USA Party Store in Marietta, expressed that her business has also been adversely impacted by the rising costs associated with tariffs. Although she has not raised prices, Tomedonou mentioned that her profit margins have been significantly squeezed while shipping costs have risen due to tariff impositions. She noted that her suppliers are primarily located within the United States, which has somewhat mitigated her exposure to overseas shipping issues. However, she has had to adjust prices specifically on plastic decor items like cups and plates, emphasizing that these costs have increased due to tariffs. Both owners acknowledged that Halloween constitutes an essential period for their businesses, accounting for over 20% of annual sales. This year, they find themselves in a precarious position, grappling with both diminished margins and the economic uncertainty affecting consumer spending. As they navigate these turbulent times, they are keen to support local customers in enjoying the Halloween festivities despite the looming pricing changes exacerbated by international trade policies. The challenges presented by these tariffs underscore the broader implications for small businesses that heavily depend on seasonal sales. Retailers like McClean and Tomedonou are now at a crossroads, reshaping their strategies on inventory management and pricing, which could have lasting effects on customer loyalty and sales performance as they strive to make it through this cavalcade of tariffs.