By Ed Avis
Halloween is just around the corner, and supply chain issues are putting a pinch in profits at costume shops. That’s one conclusion from an NCA survey conducted earlier this week.
The survey, which was completed by 26 costume shops, revealed something everyone was suspecting: A lot of costume suppliers are having a hard time getting their products to the stores this year. In fact, 80 percent of the respondents to the survey said they have had more trouble getting stock this year than in previous years.
Another question in the survey asked, “Approximately what dollar percentage of the Halloween products that you ordered this year have been delivered?” Only one respondent said their shop has received everything they ordered. The largest number, 52 percent, report that they’ve received 70 to 89 percent of what they ordered. On the low end, 20 percent say that they have received less than half of what they ordered.
Why is inventory delayed? According to the survey, 84 percent of shops have been told by suppliers that shipping problems are the cause. Thirty-six percent were told that the items they wanted were sold out, and 16 percent say their supplier didn’t give any reason for the delay. (Respondents could choose more than one answer.)
The delayed/missing inventory is causing problems at most of the shops surveyed. In reply to a question about the impact, a quarter of the shops said, “A lot of impact -- Our business is definitely impacted by our missing stock.” Thirty-seven percent said the problem was causing “some impact” on their business, while the remaining 37 percent said they were doing fine despite the problem.
Even with the inventory problems, however, Halloween is shaping up to be solid this year. In reply to a question about sales, 42 percent said that their costume sales are “Much Better Than 2020” and 23 percent said they are “Somewhat Better Than 2020.” That trend holds to other categories: 36 percent said sales of accessories and make-up are much better and 28 percent said somewhat better, while décor sales are much better for 25 percent and somewhat better for 25 percent.
Want more information on Halloween shipping issues? You can view the recording and/or read a transcript of a recent NCA webinar on the topic by logging into the NCA Member Portal and selecting the box that says Recorded Webinars.