Americans enthusiastically increase fireworks purchases in preparation for Independence Day festivities
As Americans gear up for the Fourth of July celebrations, the fireworks industry is experiencing a surge in sales, with consumer fireworks revenue reaching an impressive $2.2 billion last year, according to the American Pyrotechnics Association.
This year, retailers like Phantom Fireworks are reporting a 10-15% increase in sales, a trend that may be attributed to the Fourth of July falling on a Friday this year and the excitement surrounding America's 250th birthday next year.
However, not all retailers are enjoying the same success. Some "really small mom-and-pop shops" have chosen to stay closed this year due to tariff-related price increases, which have raised the cost of consumer fireworks by 50% from 2019 to recent years.
Stew Leonard, Jr., CEO of Stew Leonard's, discussed the impact of inflation on American consumers on 'The Claman Countdown'. Despite these challenges, Phantom Fireworks has managed to keep its prices stable compared to the previous year, attracting a significant number of customers.
The average sale at Phantom Fireworks brick-and-mortar stores this year is around $400. The majority of sales are for family packs and larger fireworks, including family assortment trays and larger singular pieces, such as the popular 500-gram repeater fireworks.
Phantom Fireworks also offers a range of lighted items for children that do not contain fuses or pyrotechnic powder, as well as pet safety-related products. The company is seeing a lot of activity on these child-friendly and pet safety items this year.
Steve Houser, president of Red Rhino Fireworks and former president of the National Fireworks Association, reported strong retail sales of fireworks. Houser has been getting "comeback orders" from customers, indicating a demand for more fireworks.
Americans are celebrating the Fourth of July with cookouts, parades, gatherings, and fireworks shows. Despite the economic uncertainties and tariff challenges, it seems that the spirit of the holiday remains undeterred.
Sources: [1] American Pyrotechnics Association [2] The Wall Street Journal, 'Tariffs Are Hurting U.S. Consumers and the Economy', May 2019.
1.With Phantom Fireworks reporting a 10-15% increase in sales this year, some Americans are finding savings on their Fourth of July celebrations, despite inflationary pressures affecting other sectors of the economy.
- Despite the tariff-related price increases, resulting in a 50% rise in the cost of consumer fireworks since 2019, a few small, independent retailers have chosen to remain closed this year due to these challenges.
- As Americans prioritize their lifestyle and entertainment expenditures, concerns over the weather during Fourth of July celebrations may significantly impact the sales of consumer fireworks, just as they do in the sports arena.
