The country’s largest retail group forecast Halloween spending will hit a new record this year as holiday attendance surges despite the turbulent economy.
According to the annual National Retail Federation (NRF) survey, conducted by Prosper Insights & Analytics, total spend, which includes costumes, decorations and parties, is expected to reach a record $10.6 billion, the record number of the surpass last year’s figure of $10.1 billion.
The trade group forecast attendance at Halloween activities to return to pre-pandemic levels, with 69% of consumers planning to celebrate, NRF reported. Last year Halloween attendance was 65%, but in 2019 it was around 68%.
Target CEO Brian Cornell even told analysts on a recent conference call that it’s expected that “guests will be trick-or-treating tolerant and planning parties to celebrate with family, friends and neighbors.”
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Each consumer participating in the holiday is expected to spend an average of $100 on candy, decorations, cards and costumes, which is “the second highest in the history of the survey,” NRF reported.
Costumes will make up a large part of this spending.
Overall, spending on children’s and adult costumes is expected to reach its highest level in the past five years, totaling $2.9 billion. Spending on animal costumes is expected to reach $710 million, according to NRF, beating last year’s record.
“As consumers continue to return to pre-pandemic behaviors, retailers are poised to meet that demand and help make this vacation a fun and memorable experience,” said Matthew Shay, CEO of NRF.
Almost half of all shoppers looking to participate in Halloween activities started shopping in September or even earlier, and retailers are taking notice.
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Michaels chief operating officer Joe Venezia told FOX Business earlier this month that there was strong demand for its Halloween supplies back in August.
“We regularly see our Christmas range selling out and the response to our Halloween items hitting stores in August is an early indicator of demand this year,” Venezia said.
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Party City’s parent company, Party City Holdings Inc., said in a recent conference call that it was “cautiously optimistic” about the Halloween season despite the uncertain economic environment with high inflation.
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“We will provide consumers with a better experience each year and plan to operate between 130 and 150 Halloween City stores this year, which is an increase from last year’s 90 stores,” said Brad Weston, CEO of Party City Holdings Inc., to analysts.