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Halloween spending expected to decline slightly this year

 

Minneapolis Star Tribune

As temperatures drop and the economy sputters along, many Americans aren’t exactly in the mood to get their ghoul on this Halloween.

Anna Harris of St. Paul, Minn., is among those cutting back this Halloween. “Because I have less money,” she explained.

Still, Harris plans on celebrating by dressing up as Catwoman for two parties. At a Wal-Mart store last week, she debated between a black-satin sequined cat mask vs. a leopard-festooned mask (with matching kitty tail). Both bore a price tag of about $5, and she plans on spending another $5 on makeup to complete her feline party look.

For retailers, Halloween is an important revenue bridge between the crucial back-to-school and Christmas buying seasons. And, despite early indications of shopper gloominess, 158 million consumers plan to celebrate Halloween in some manner this year – the most popular activity, of course, will be doling out candy.

“Halloween is one of the most popular holidays of the year, and while we are expecting people to cut back on their spending a bit this Halloween, there’s no sense it will be a bust,” said Kathy Grannis, a spokeswoman for the National Retail Federation.

“It’s a muddy picture,” said George John, associate dean and marketing professor at the University of Minnesota’s Carlson School of Management. In terms of retail sales, “We’re trucking along. We’re not falling off a cliff, but we’re not surging upward, either,” John added.

A survey distributed recently by the NRF indicates that nearly 9 in 10 people plan to spend less on candy, costumes and decorations this Halloween season compared with last year. Total spending on the holiday is expected to reach the $6.9 billion mark nationwide this year – that’s about $75.03 a person, on average, down from $79.82 last year.

About a quarter of the 5,200-plus consumers surveyed cited the economy as the main reason for the decline.

“Unemployment has improved, but not at a solid rate that we would normally see when a recession ends. Consumer confidence has trended downward, so it’s a slow improvement,” John said. “Sales for big retailers year-over-year are negative or marginally positive.”

Some Halloween enthusiasts plan on cutting back by buying “a la carte” – that is, investing in a piece or two, such as faux facial hair or just a mask, instead of a full-fledged costume.

Target Corp. capitalized on that trend by partnering with fashion and costume designer Chris March for a series of striking wigs that serve as the cornerstone of the retailer’s Halloween collection. March, a former Project Runway contestant, designed eight styles: Geisha, Greaser, Starlet, Witch, Medusa, Monster Bride, Mohawk and Afro. Each sells for $20 or less.

Not all retailers are reporting Halloween-spending skittishness among their customers. Consumers nationwide are expected to spend a little over $1 billion on children’s costumes and $1.2 billion on adult costumes, according to the NRF-sponsored survey.

Thrift shops report brisk sales this time of yearl. “It’s a busy time of year for us,” said Zubin Segal, public relations manager at Goodwill Industries of Central Texas. “We create an entire section devoted to Halloween in each of our stores” -- including in South Florida. Goodwill stores stock an assortment of new and used costumes, as well as makeup and decorations.

For Spirit Halloween, the spooky season is the only season. The company’s pop-up stores take up otherwise vacant storefronts each fall in shopping centers across South Florida. Nationwide, the company – part of the Spencer Gifts chain – has about 1,050 stores, Barr said. They’ll remain open until Nov. 3.

“Halloween is huge,” said Lisa Barr, senior director of marketing for Spirit Halloween. “It’s not just for trick-or-treaters anymore. Adults have really hopped on the bandwagon. It’s a stress-free holiday where you can really let loose.”

Hot costumes this year, according to Barr, include traditional items such as super heroes and zombies, as well as pop culture knockoffs such as singer Miley Cyrus, whose bizarre “twerking” – a type of dance – during the MTV Video Music Awards garnered worldwide attention.

Another hot area: pet costumes.

About 13.8 percent of those surveyed for NRF say they will take extra time to find the “perfect costume” for their pet. All told, consumers are expected to spend $330 million on costumes for their four-legged companions.

Popular doggy costumes trending on Google Shopping include hot dog, Wonder Woman, Ewok and matador get-ups.

The article was supplemented by reporting from the Austin American-Statesman and Miami Herald staff.

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