Halloween spending expected to top $6.9 billion

by The City Wire staff (info@thecitywire.com) 23 views 

Cooler fall weather may bring cooler sales this Halloween, as fewer Americans plan to celebrate the fall holiday, according a recent survey sponsored by the National Retail Federation.

That said, it’s still a big holiday for retailers, with spending estimates of $6.9 billion this year. Spending estimates are down from $8 billion spent last year.

The recent survey found nearly 158 million consumers plan to participate in Halloween activities spending an average $75.03 on decorations, costumes, candy and entertainment. The activity is down from 170 million people who spent an average of $79.82 last year.

“Still one of the most beloved and anticipated consumer holidays, Halloween will be far from a bust this year,” said NRF President and CEO Matthew Shay. “After a long summer, the arrival of fall will put millions of Americans in the spirit to partake in traditional and festive activities. Retailers recognize that when it comes to Halloween, consumers’ creativity abounds. We expect retailers to stock their shelves with unique costume ideas for adults, children and pets, a variety of candy options and never-seen-before home and yard decor.”

The survey found consumers will dole out $2.6 billion on costumes, with more than half of that going to adult costumes.

 Some 13.8% of the survey respondents said they will purchase costumes for their pets, spending roughly $333 million in aggregate. Another $2.08 billion will be spent on candy and $360 million on greeting cards.

Second only to Christmas in terms of spending on decorations, Americans will spend $1.96 billion on life-size skeletons, fake cob webs, mantle pieces and other festive decorations.

Despite the anticipation of the popular fall event, some 25.2% said the state of the economy will impact their Halloween spending plans. An estimated 86% will spend less overall, up slightly from 83.5% last year.

Consumers plan to curtail the spending by buying less candy and nearly one in five plans to make a costume instead of buying one.

With Halloween still more than a month away, retailers from Dollar General to Wal-Mart have already began stocking up their stores in hopes of driving added traffic and sales to what is predicted to be a softer third quarter.

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