The spooky weekend is just around the corner. As expected, Halloween is turning out to be the biggest spending event of 2021 so far. With sales of candy, costumes and decorations increasing, the season has come in full force this year.
Consumer spending is forecast to reach a historic high of $10.14 billion — 20% more than last year when consumers spent $8.05 billion. What does this all mean? It means Americans are gearing up to spend and celebrate one of the largest retail events of the year, second only to Christmas, in full force. Meanwhile, here’s how you can celebrate a budget-friendly Halloween this year.
The numbers speak
Recent surveys have found that a person will spend $102.74 on average ($10 more than what was spent in 2020) on decorations, costumes and candy. In fact, people have already purchased more Halloween candy than they did in 2020 and even 2019. That’s a new high in Halloween spending.
Seasonal candy sales have gone up by 29% in the second half of this year and 43% compared to the second half of 2019. The candy industry is anticipating a solid rebound for trick-or-treating, making up for the loss of 2020.
Costume is king
Last October, many business owners expected a massive Halloween season sale because the holiday fell on a Saturday and a full moon. Instead, the sales dipped by 80%. Interestingly, many people decorated their homes for the first time instead of buying costumes last year.
As a result, giant outdoor inflatables grew more prevalent in 2020. Home Depot’s 12-foot-tall skeleton was sold out at $320. People who couldn’t buy it were willing to purchase the secondhand for thousands of dollars.
Even though candy sales are soaring like never before, costumes are expected to be the top-selling category this year. Surveys conclude that consumers will spend a total of $3.32 billion only on costumes, which is drastically more than 2018, 2019 and 2020. This is exciting news for costume retailers who were walloped in 2020. Where does that leave the Halloween industry though?
More demand and no supply
Though retailers are expecting a big sale, supply chain constraints are affecting every industry because of the Covid-19 pandemic. Halloween and Costume Association, a group representing costume manufacturers, claims the current demand is high right when shipping complications prevail. This might lead to shortages in some parts of the country.
The 25% increase in costume and decor sales has not resulted in significant profits but empty shelves across the country primarily because of Covid-19 pandemic-related supply problems. Some stores that had spent $12,000 on inventory have received only $500 worth of goods so far. Though there is strong demand this year, supplying to meet the demands will be more complex than in previous years.