Fright Night: Halloween Will be particularly scary for retailers this year but chocolate sales stay high
Monday, October 26, 2015 at 2:41PM Halloween retail sales, which had grown to an $8 billion industry by 2012, is expected to fall 7 percent this year, to $6.9 billion. According to the National Retail Federation, this is the lowest total since 2011.
Experts blame the weak Halloween forecast on a shift in consumer spending to experiences rather than must-have items. Some retail experts view Halloween as a prediction of holiday sales, so poor results could cast a spell on the Christmas selling season. Supply and demand are not syncing, creating high inventory levels and low sell thru percentages of Halloween products.
The average American will spend $74.34 on the holiday, forecasts the NRF. This is slightly down from $77 in 2014. Although Halloween product sales may be down, malls are trying to take advantage of the holiday, as it falls on a Saturday this year, with trick-or-treat events and more Halloween-themed items on the shelves and on display. Melinda Merrill, a Fred Meyer spokesman, said that when Halloween falls on a weekday, year-over-year sales growth is typically in the single digits. “When it falls on a weekend, there are more parties, they are bigger and customers decorate and dress up for them on a bigger scale. … We’ll see much larger growth,” Merrill added.
Halloween chocolate sales generated $217 million in 2014, and remains the top-selling treat for the holiday. Leaders Hershey and Mars account for 87% of chocolate Halloween candy. Most variety bags contain chocolate over fruity or sour flavors.
Sources: New York Post, USA Today Democrat Herald, MarketRearch.com