This year, Halloween spending is on the rise with many households preparing to invest more in the spooky celebrations. According to a Deloitte survey of 1,500 U.S. consumers, households are expected to spend an average of $285. Of this, $66 will be dedicated to experiences, while $219 is allocated for purchases from retailers. Notably, 34% of shoppers intend to spend more than they did the previous year.
Boost in Spending and Consumer Behaviour
Consumers are gearing up for Halloween by purchasing various items such as costumes and accessories ($57 on average), decorations ($54), candy, food, and beverages ($48), and dining or social events ($32). Shopping for these items is largely done in physical stores, with 67% of respondents opting to do so. Meanwhile, a significant portion also plans to shop online. Among store preferences, grocery stores lead with 55% of shoppers, followed by big box stores (47%), discount and dollar stores (40%), and specialty Halloween stores (36%).
Financial Concerns Amid Festivities
Despite the merriment, some consumers are turning to financial aid to manage their spending. Deloitte’s findings reveal that one in five shoppers will utilise buy now, pay later (BNPL) services or similar financing options. Though about 70% of respondents feel they can comfortably manage their holiday expenditures, concerns about the economy persist. While 58% remain optimistic about economic stability or an upswing, 42% foresee a downturn within the next year.
Early Shopping Trends
Halloween shopping is already in full swing, with over half (56%) of consumers starting their purchases by the end of September. Additionally, around 37% aim to complete the bulk of their shopping well before October begins. Complementing Deloitte’s research, a National Retail Federation report projects a $13.5 billion spend on Halloween this year, an increase from last year’s $13.1 billion. Nearly half of the shoppers, 49%, are expected to have begun their shopping activities by September or earlier.
Retailers and the Broader Holiday Season Forecast
Retailers are keenly aware of these early shopping patterns and are responding with promotions and new product lines. This is evidenced by Home Depot’s Halfway to Halloween collection in April and Target updating 70% of its Halloween assortment in August. The increase in consumer spending is also anticipated to extend into the entire holiday season, with a Bain & Company report suggesting over $1 trillion may be spent in November and December, marking a 4.5% rise over the previous year.
Amid these trends, economic worries remain. A survey by the University of Southern California and the Financial Health Network highlights financial challenges, showing that over three in ten consumers are battling excessive debt. Particularly, lower-income individuals have been struggling to pay bills on time compared to the last year, underlying a fragile economic environment as the holiday season approaches.
Reporting based on coverage first published by retaildive.com.