It’s spooky season. And here’s the real treat — Halloween spending is projected to hit nearly $12 billion.
Katherine Cullen, NRF's vice president of industry and consumer insights, joins Retail Gets Real to talk about Halloween spending trends, popular costumes, why consumers are shopping early and who is most excited to celebrate this October.
“Fall hit and everyone was ready to turn the switch on summer and move into a new season,” she says.
Halloween buyers aren’t scared to shop early. “We've seen Halloween creeping up on the calendar, and people getting in the spirit early,” Cullen says. “Just like they are with other major events — back to school, winter holidays — people are starting their browsing earlier.”
When the National Retail Federation surveyed consumers this year, about half said they were starting to shop more than a month in advance. That’s compared with 37% five years ago and less than one-third 10 years ago.
“The results were really interesting,” Cullen says. “It was not like we see for some other holidays where it's all about the sales or deals. Certainly people are looking to find a great value, but it's because people want to celebrate fall, and they really felt that Halloween embodied that spirit.”
Halloween spending is projected to reach about $12 billion this year, which represents a 32% increase in the last five years. Spending is down about 5% from last year, though Cullen believes focusing on that year-over-year change diminishes the overall picture.
“I think it takes away from the fact that this holiday has grown in popularity,” she says. “When we look at older Gen Z and millennial-age consumers, Halloween is their favorite holiday. I think you have all this momentum and engagement around what used to be a relatively small event. Before the pandemic, it represented about $8 billion in terms of spending, and now we're up at close to $12 billion.”
Many of this year’s most popular costumes are inspired by pop culture, movies and TV shows. For kids, top costumes include Spider-Man and other superheroes, Beetlejuice, Mario and Paw Patrol. Adults typically go for the classics like witches and vampires.
As the weather gets colder, spending will heat up even more. Looking ahead to November and December, Cullen expects to see consumers embrace the season and spend at elevated levels.
“We're seeing people really prioritize their family, friends and celebrations around that,” she says. “I also think there's a lot going on in the world right now. People are seeking a sense of normalcy and some joy. The holidays — whether it's Halloween or the winter holidays — can bring a little bit of escapism.”
Listen to the full episode to hear more of Cullen’s insights into Halloween spending and what’s coming up next for the holiday season.
(00:02:14) Why people shop early
Why half of consumers are starting to shop a month in advance
Getting into the spirit of a new season
(00:04:08) Halloween spending projections
The question that “irked” Cullen
Why Halloween spending is up over the last five years, but down from last year
Why looking at the yearly trends can be misleading
(00:06:56) The year’s most popular costumes
The impact of movies and TV shows on costumes
(00:08:50) Where consumers are shopping
Top destinations and retailers for Halloween shopping
(00:10:17) Who is Halloween for?
Who celebrates Halloween and what it represents
Halloween’s impact globally
(00:11:59) Early predictions for the holiday season
Spending forecasts for November and December holidays
Retail therapy as escapism
Get ready for Retail’s Big Show in NYC
Become an NRF member and join the world’s largest retail trade association
Find more episodes at retailgetsreal.com
