- Halloween retailers are bracing for disruptions due to ongoing tariff uncertainty on Chinese goods, which are key to costume and decoration supply chains.
- Spirit Halloween plans to open over 1,500 pop-up stores nationwide despite bypassing its flagship store opening celebration over “international disruptions.”
- Retail landlords could face increased vacancy or lease concessions as tenants sourcing from China struggle with pricing and timing.
Trickier Treats Ahead
The specialty Halloween retail sector is facing a chilling season as tariffs on Chinese imports threaten margins and supply chains, reports Bisnow. The 145% surcharge introduced by the Trump administration earlier this year—though paused temporarily—has caused enough concern to delay marketing plans and influence sourcing decisions for key seasonal players.
A Retail Landscape In Transition
The Halloween market was already reeling from Party City’s bankruptcy and subsequent closure of 700 stores, including its Halloween City spin-offs. This has left a major vacuum in the seasonal retail space that others, like Spirit Halloween, are eager to fill—if they can overcome international supply hurdles.
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Pop-Ups Press On
Spirit Halloween, the dominant player in the seasonal costume game, is forging ahead with plans to open more than 1,500 pop-up locations in August. However, the company notably skipped its usual grand opening event, citing “international disruptions and supply chain challenges.” CEO Steven Silverstein insists demand remains strong and that the brand is “moving full speed ahead.”
Supply Chain Frights
Roughly 90 days after the latest US-China tariff pause, many retailers are working to fast-track shipments to avoid future surcharges. “Retailers will look to continue to frontload merchandise because of the uncertainty,” said Jonathan Gold of the National Retail Federation. Retailers such as Michaels, HomeGoods, and At Home are already stocking shelves—but future availability and prices remain uncertain.
Costs Creep Up
Higher import costs are expected to be passed on to consumers. “Some products may be too expensive to source,” said GlobalData Managing Director Neil Saunders. Last year, Americans spent $11.6B on Halloween, and although demand remains strong, analysts warn that higher prices could soften consumer enthusiasm in 2025.
Ripple Effects For Real Estate
Tariff concerns could ripple beyond retail into the real estate sector. John Hentschel, Global Chair of The Counselors of Real Estate, warned that retailers reliant on Chinese imports may seek rent concessions or default altogether, impacting vacancy rates in shopping centers.
Looking Ahead
Halloween retail is increasingly becoming a bellwether for broader holiday season trends. If tariff disruptions continue, they could signal rough waters for the Christmas season and beyond. As Michael Tucker of Scotland Wright Associates put it, “It’ll be interesting to see the challenges that come up… sometimes they can impact things you don’t expect, like a Halloween costume.”
