With Halloween 2025 approaching, Chicago Costume in Chicago is bustling with activity. Costumes ranging from superheroes to Japanese animation characters, wigs, props, and fake blood are displayed, while vintage pieces from the 1970s are ready for one more dance on the floor.
Behind the colorful displays, the family-owned shop is grappling with the effects of Trump-era tariffs on Chinese imports, which have made Halloween costumes more expensive.
Owner Courtland Hickey revealed that he ordered 40% fewer costumes this year due to tariffs and rising costs. To fill the gap, he turned to decades of unsold inventory, repurposing old costumes, accessories, and vintage clothing to meet customer demand without raising prices excessively.
🔹 How Chicago Costume is Adapting
- Vintage stock utilization: Over 10 years of unsold costumes and accessories were repurposed for 2025’s Halloween.
- Creative DIY solutions: Staff sewed costumes from fabric scraps, turning black robes into wizards, judges, and choir members.
- Reducing new imports: With tariffs inflating costs, fewer new costumes were ordered.
- Price adjustments: Bulk or licensed children’s costumes are 25% more expensive this year.
Courtland Hickey explained:
“If people have less money to spend, costumes fall lower on their priority list. Investing too much in new products is risky.”
🔹 Tariffs and Their Impact on the Industry
- Nearly 90% of Halloween costumes sold in the US are manufactured in China.
- Tariffs on Chinese imports rose to 145% in April 2025, drastically increasing costs for retailers.
- Competitors like Trick or Treat Studios responded by raising prices 15% and shifting production to Mexico, even laying off staff.
- For smaller shops like Chicago Costume, this meant relying on vintage and in-house refurbished stock.
🔹 Creative Solutions from Chicago Costume
| Strategy | Details |
|---|---|
| Vintage Inventory | Repurposing 10+ years of costumes and accessories |
| DIY Crafting | Employees make unique headwear, props, and costume pieces |
| Price Management | Children’s licensed costumes priced 25% higher than last year |
| Diversification | Cosplay, themed parties, and mascot costume business keep revenue flowing year-round |
| Community Focus | Personalized service, local customer loyalty, and unique costume combinations |
🔹 Customer Response
Despite price increases, many longtime customers remain loyal. For example:
- Damien Johnson, a Halloween enthusiast, plans to spend $90 for a Pennywise costume including hair and makeup.
- Shoppers appreciate unique, locally sourced, and creatively repurposed costumes compared to mass-produced online alternatives.
🔹 Key Takeaways for Small Retailers
- Inventory management matters: Old stock can become gold during market disruptions.
- Creativity adds value: DIY and upcycling make costumes unique and reduce dependency on imports.
- Diversification stabilizes revenue: Serving cosplay, theater, and sports mascot markets mitigates seasonal risk.
- Local loyalty is powerful: Personalized shopping experiences attract customers even when big chains drop prices.
