Major Halloween retailer sounds warning consumers need to hear

If there’s one holiday Americans love, it’s Halloween. And you don’t have to be a kid to appreciate the spookiest day of the year.

In many parts of the country, Halloween is really a month-long celebration.

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People might save the actual trick-or-treating for October 31. But let’s not kid ourselves. The month of October tends to be filled with Halloween-themed events, from haunted hayrides to pumpkin picking to trunk-or-treat events where kids can start loading up on candy early.

Halloween is such an important holiday to retailers that they’ve taken to advertising it earlier and earlier.

It used to be that Halloween candy and products wouldn’t hit the shelves until well after Labor Day. Now, it’s not unusual to see Halloween displays in the middle of August, at a time when consumers are still doing their grocery shopping in flip flops.

Major Halloween retailer sounds warning consumers need to hear.

Image source: Shutterstock

Consumers tend to spend big on Halloween

Americans are so into Halloween that they're willing to throw a lot of money at it. In 2024, Halloween-related spending hit $11.6 billion, according to the National Retail Federation.

On a per-consumer basis, that $104. And while that may not jump out at you as a huge amount of money, let's remember that consumers have been pretty cash-strapped these past few years due to stubbornly persistent inflation.

Part of the reason Halloween costs consumers so much money is that celebrating isn't just a matter of buying candy to give out.

For parents, it means shelling out money for costumes as well.

Even if you’re not a parent, you may feel compelled to dress up yourself to greet trick-or-treaters. And if you enjoy being the house on the block with the cool life-size skeleton out front, that’s going to run you a nice amount of money as well.

Are tariffs coming for your Halloween?

Many retailers are worried about the impact tariffs will have on their business in the coming months.

There’s the financial aspect of tariffs, of course, that has retailers concerned.

If it costs retailers more to source inventory, they may have to pass at least some of those costs along to consumers. That could result in slower sales and smaller profits.

But there’s another tariff issue retailers have to consider, and it’s challenges getting their hands on the inventory they need.

Tariffs could force manufacturers overseas to shutter. If business slows down, some factories may not be able to stay afloat.

As it is, retailers like Walmart and Target risk a toy shortage this holiday season because a major supplier in China is at risk of shuttering. But that risk isn’t limited to toys alone.

Spirit Halloween, which is known as the largest Halloween retailer in the U.S., recently announced that it’s having trouble getting its hands on the products consumers expect.

The Halloween giant normally hosts a grand opening event each year at its flagship store in Egg Harbor Township, New Jersey. Last year, almost 3,000 fans showed up for that event.

But this year, Spirit Halloween is scrapping that event due to supply chain issues.

In a Facebook message to fans, the retailer said, “Unfortunately, international disruptions and supply chain challenges have thrown a wrench in our opening plans.”

And while the company said it's on track to open more than 1,500 stores this year, it's clearly anticipating problems with inventory.

Spirit Halloween did not directly mention tariffs in its social media message. But reading between the lines, we know that many retailers are bracing for inventory shortages stemming from tariffs. That could trickle down to Halloween, making it harder for fans of the holiday to get their hands on costumes, decorations, and novelties.

Halloween fans may want to do their holiday shopping early this year in case supply chain issues persist into the fall season.

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Compounding the issue is the loss of Party City, which filed for bankruptcy in late 2024 and has since shuttered stores and liquidated its inventory.

The disappearance of Party City gives Spirit Halloween a prime opportunity to command a larger share of the market this year – but only if it’s able to stock its shelves in time. If it can’t, consumers might really be out of luck.