Fear not: the big business of fright continues to boom this year. Despite political implosion in the U.S., consumers are not skimping on Miley Cyrus outfits, mass quantities of candy corn, skeletons on their doorsteps, or elaborate costumes for their dogs.
Halloween, with all its silliness, has ballooned to a multi-billion-dollar industry. Average spending on Halloween is up 55 per cent since 2005, according to the U.S. National Retail Federation (NRF). Total Halloween spending is expected to be slightly lower compared with last year, but still amount to a whopping $6.9-billion (U.S.) in decorations, candy, costumes, and entertainment.
"It seems to take on a greater significance year after year," said John Archer, senior adviser at retail consulting firm JC Williams Group. "There's definitely more products out there. Costumes, parties, haunted houses … they are extending the [scope of] what you should be spending on," he added.
The NRF cites a weak economy and mediocre job growth for a small pullback this year. The average consumer is expected to spend $75 on Halloween, down a touch from $80 in 2012, but still $30 more than 2005, according to the NRF's 2013 Halloween Consumer Spending Survey.
"Halloween will be far from a bust this year," said NRF CEO Matthew Shay. The annual fright fest has eclipsed other holidays to become second only to Christmas in terms of decoration sales; Americans will spend nearly $2-billion on the segment this Halloween.
Where is all the money coming from? Most tellingly, it's not about the kids any more. Gone are the days when Halloween meant simple fun for children wandering around their neighbourhoods. Adult costumes will reach $1.2-billion in sales this year, higher than the $1-billion for children's costumes. Sixty-five per cent of those in their late 20s to early 30s said they will wear a costume. "For adults, you can put on a Halloween costume and forget about work, the bad economy, and other pressures," said Kelly David, spokesperson for Spirit Halloween – the largest American Halloween-focused retailer – in a South University article.
Here in Canada, seasonal spending is similarly expected to be up. BMO Economics projects that retail sales will be over 2 per cent higher than last year. "Retailers have enjoyed some growth despite a challenging economy," said Benjamin Reitzes, senior economist at BMO Nesbitt Burns. Mr. Reitzes noted that Halloween is "always a factor" to boost October sales. According to the Retail Council of Canada, Canadians spend $360-million on candy in October, about $80-million higher than in other months.
Andrew Gidaro, general manager of Toronto-based Screemers haunted house, noticed that despite raising prices this year, Screemers should actually end the season with 5 to 10 per cent higher revenue than last year. "We thought by raising our prices there would be a pullback on demand," he explained, "but people don't even care. We offer discounts on the website, but many people don't even bother with them. It amazes me."