This week, US retailers will be getting out the fake spider webs and Lady Gaga costumes for the country’s third largest retail event. US Halloween sales are expected to reach $5.8bn (£3.7bn), according to the National Retail Federation (NRF).

This week, US retailers will be getting out the fake spider webs and Lady Gaga costumes for the country’s third largest retail event. US Halloween sales are expected to reach $5.8bn (£3.7bn), according to the National Retail Federation (NRF).

With 148 million consumers - just under half of the US population - participating in Halloween, the holiday has become a major seasonal event not only for supermarkets and mass merchants but increasingly for speciality retailers as well. This year, lingerie retailer Victoria’s Secret unveiled its first range of more premium, adult Halloween costumes, priced between $68 and $198 (£43 and £126). Petsmart and PetCo are stocking a range of themed treats, toys and costumes for dogs and cats - the latter has been an area of real growth over the past few years with the NRF stating that 11.5% of American consumers will put their pets in fancy dress this year.

The holiday is about much more than just costumes and candy in the US. American retailers will also be touting Halloween-themed greeting cards, decorations and pumpkins. Half of Americans will decorate their homes and a whopping 72% will hand out candy to trick-or-treaters, according to the NRF.

Halloween is therefore a firmly established US seasonal retail event and is often seen as a bridge between the busy back-to-school period and Christmas. In fact, it is impressive sales have held up considering Christmas shopping has been getting earlier each year. Black Friday, the day after Thanksgiving, traditionally signified the start of the Christmas shopping period as retailers offered deep discounts on big-ticket items to drive footfall. However, in the past several years retailers have launched Black Friday promotions as early as October. This year, for example, Sears will hold ‘Black Friday Now’ sales at its stores every weekend from the end of October until November 26.

Despite a fragile economy, Halloween remains an important holiday for US retailers and consumers. Going forward, pop-up shops will look to grab a greater share of the pie. Spencer’s-owned Spirit Halloween, for example, has grown from approximately 63 stores in 1999 to nearly 900. The pop-up stores are able to keep their costs low by operating for just two months of the year, which also allows them to generate a sense of excitement and urgency to buy among consumers.

Natalie Berg, global research director, Planet Retail. For more information contact us on:

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