Selling ‘Scary’ Before ‘Merry’

Managing Halloween inventory is even tougher. What sells not only depends on what's trending nationally, but also local preferences. Each year brings new "hot" costumes, making it almost possible for businesses to forecast sales using historical data.

Poor inventory management results in lost revenue and steep markdowns — a double whammy for retailers. Out of stocks drive paying customers towards competitors, while surplus items sit on shelves until they're sold for less profit. Worse yet, it's too late to avoid the costs of imbalance when businesses finally realize the problem.