by Doug Desjardins
After suffering through a frighteningly bad Halloween sales season in 2009, retailers can expect big improvements this October.
The National Retail Federation (NRF) projects total Halloween sales to hit $5.8 billion this year, an increase of about 16% over a 2009 season that saw a double-digit decline in spending.
The NRF projects the average consumer will spend $66.28 on costumes, candy and decorations this year compared to just $56.31 in 2009. Spending is projected to be on par with Halloween 2008, when consumers spent an average of $66.54 on Halloween fare.
“In recent years, Halloween has provided a welcome break from reality, allowing many Americans a chance to escape from the stress the economy has put on their families and incomes,” said NRF president and CEO Matthew Shay. “This year, people are expected to embrace Halloween with even more enthusiasm and will have an entire weekend to celebrate, since the holiday falls on a Sunday.”
The largest share of Halloween spending will be on costumes ($23.37) followed by candy ($20.29), decorations ($18.66) and Halloween cards ($3.95).
Despite the optimistic outlook, consumers are still expected to look for bargains and keep a lid on how much they spend, a trend analysts say will be common for years to come even after the economy fully recovers.
“Though Halloween spending will be much more robust than a year ago, consumers will still err on the side of caution,” said Phil Rist, executive vice president of strategic initiatives for BIG Research. “Americans are excited about Halloween but are still being frugal and pinching pennies wherever they can."
The NRF Halloween Survey shows that 30.1 percent of consumers say the economy will impact their spending plans for Halloween. Nearly half of consumers (45.1 percent) say they will spend less on candy this year while 18.5 percent plan to wear the same costume as last year, and 19.5 percent plan to save money by making their own costume.
On the positive side, 40.1 percent of respondents plan to wear a costume this year compared to 33.4 percent in 2009. And more than half of respondents (50.1 percent) said they plan to decorate their home or yard for Halloween, a rate second only to Christmas. And 11.5 percent of consumers say they plan to spend money on a costume for their pets.
Specialty retailers are also anticipating a better Halloween season. Ricky’s, a retailer that operates small, seasonal Halloween stores in New York, plans to open up to 50 stores this year, about twice as many as 2009.
Retailers are also expecting old favorites and a few new entries into this year’s most popular costumes list. Lady Gaga outfits are expected to be on the best-sellers list along with vampires, an old classic rejuvenated by the Twilight movies and the HBO series True Blood.
Resources
Retail: Halloween Spending to Hit $5.8 Billion
After Spooky 2009, Halloween Spending Bounces Back to 2008 Levels
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