The increased costs associated with tariffs impact all of us, affecting millions of people. Retailers of all kinds across Illinois import many of the goods they sell. Tariffs have created more uncertainty for retailers than many have ever experienced. The Illinois Retail Merchants Association has found that while retailers are trying to hold-off on price increases, it’s impossible to absorb the extra expenses for numerous business owners who function on very small margins – which forces consumers to pay more.
Retailers like Holly Schulz, owner of Hip Hip Hooray in Glenview, enrich our economy and strengthen our communities, even during the uncertainty of increased tariff expenses. To better understand how Hip Hip Hooray is dealing with the escalation of existing tariffs, we sat down for a conversation with Holly.
When it comes to fun and games on Chicago’s North Shore, there is one independent retailer with perhaps the most unrivaled legacy of serving generations of families. Hip Hip Hooray in Glenview is like walking into the greatest toy box ever, with the aisles lined with contemporary and retro toys, games, and crafts for every age.
This family-owned toy store is owned by Holly Schulz, who describes herself as the “owner, president, chief cook and bottle washer.” Holly’s journey into retail started as a teenager working in the toy department at the iconic Marshall Field’s department store on State Street in Chicago.
“I love owning a toy store, because it brings happiness to so many people,” said Holly with a smile. “They’re happy and smiling when they come in. I love to watch the kids grow up. I watch the sparkle in their eyes. It’s very special to me.”
These days, Holly faces a challenge to her business unlike any other, she said — including the COVID pandemic and the real estate crash in 2009. Given that the overwhelming majority of toys are manufactured in China and therefore subject to stiff new tariffs — and the specter of additional tariffs — we decided to speak with Holly about her reality as the owner of a toy store.
IRMA: With new tariffs being imposed, how is business different for you?
HOLLY: I’ve been trying to think back in my 40 years — everything we’ve weathered. Between stock markets crashing and COVID, of course, all that really set me back… But this is different. It has a different taste. Am I concerned? Yes, very concerned.
IRMA: Why does it have a different taste? What is it?
HOLLY: Companies aren’t going to come back here to manufacture. So all it’s doing is adding extra money for me to purchase an item and for consumers to buy that item. Because let’s face it, you have to be an idiot not to know that the tariffs get passed on to the consumer. So it’s difficult. It really is.
IRMA: What have you already started to notice as new tariffs are imposed?
HOLLY: In the spring, when we first got notification about tariffs, I noticed that a lot of the vendors stopped production. So, who knows what’s going to come in? They started sending notifications effective May 1st. They told me a particular toy is going to go up in price effective June 1st, or that another product is going to go up in price now. You know, all those toys are made in China. There’s nothing made here except Green Toys, which is a wonderful company that still manufactures toys in the United States. Other toy brands might say that their products are designed here, but they’re not manufactured here — and the manufacturers are not going to come back.
IRMA: Why are toys not manufactured here?
HOLLY: Because toy manufacturers couldn’t find cheap enough labor. Americans don’t want to work on the cheap. I don’t blame them. Everybody deserves to make a living wage, and they can’t manufacture toys in this country for that reason. It’s just not going to happen.
IRMA: Are your prices to purchase merchandise starting to increase?
HOLLY: Absolutely. They have just started to go up. What I did notice is that on an invoice dated May 15th, there was a tariff charge. It said this is reflecting new tariff prices. Now everything is coming through that way, and we were pressured to order before all the tariffs went into place. As a result, I’m pretty good for this Christmas. But I’m concerned about next year. I’m concerned, because toy stores generally do well on special occasions. People don’t come through here all day long saying, ‘Gee, I want to spend money on toys today.’ They come in for birthday parties, which are key for me. They come for holidays — Easter, Valentine’s Day, Christmas, those types of things.
IRMA: Are you starting to pass on the costs to your customers?
HOLLY: I have to. My costs haven’t gone down. So what happens if I’m paying more? The customer pays more. You know, everything in my store, unfortunately, is manufactured in China, because all the American manufacturers left — including the wrapping paper. We offer wrapping as a free service here. We’re known for our gift wrapping skills. But we just got notification that the cost of wrapping paper went up (because of tariffs).
IRMA: What do you think will happen when people stop buying toys from you?
HOLLY: I don’t know. It’s uncharted waters. I do know with COVID, people were getting a little pissy, because the prices went up.
IRMA: So, is it fair to say you’re frustrated?
HOLLY: I’m very frustrated. It’s hard enough to run this business with Amazon and other online retailers, because I don’t sell my merchandise online. It’s very frustrating. We operate on very small margins, and these tariffs are costing me more to make a living.
IRMA: What are you telling your customers about tariffs?
HOLLY: Today, we had a lady that was here and I said, ‘Buy it now, it’s going up. The next shipment will be higher in price.’ I had another customer in the store a couple of weeks ago. She was on the phone talking to her daughter-in-law, and she said, ‘I think I’m going to buy this for Christmas.’ She had ten gifts that we wrapped in Christmas paper. She was concerned about paying more because of tariffs later.
IRMA: Have you given any thought to the fact that here you are, a small retailer, but you’re caught up in this global dispute?
HOLLY: It’s very frustrating to be caught up in this global dispute. You know, I’m at the back side of my career. I don’t know what people are supposed to do who are just starting out with a toy store. I think it’s scary.
IRMA: What would you like to tell federal or state politicians about how these tariffs are impacting you?
HOLLY: If you’re out there listening to this, please help the little Mom-and-Pop stores. Stop this! It’s hard to go on. It’s hard to go on with all these extra added tariffs.
