Halloween shoppers are spending less — but there’s still an October surprise for retailers

Here’s the thing:

Halloween spending this year is projected to drop to $11.6 billion from last year’s record-setting $12.2 billion as consumers cut back due to inflation and tighter budgets.

Despite the spending dip, October is growing in relevance as the kickoff to the monthslong holiday shopping season — and that’s a treat for retailers.

“In five years, I believe there will be even less focus on Black Friday and Cyber Monday, and a greater emphasis on this October shopping period,” Hitha Herzog, a retail expert and chief research officer of H Squared Research, tells The Current.

Predictions from analysts like Herzog incentivize retailers to make the most of the crowds flooding store aisles and websites during spooky season.

Data debrief:

In its annual consumer survey exploring Halloween trends, the National Retail Federation (NRF) reports that 72% of Americans plan to celebrate the haunted holiday.

As for shopping destinations, consumers surveyed continue to favor discount stores (38%), specialty stores (33%) and online retailers (33%). This year, there’s an average spending of $103.63 per person, roughly $4.62 less than last year’s record of $108.24, the survey finds. It’s projected that consumers will spend roughly $1.8 billion on adult costumes (witch and vampire top this year’s list), while children’s costumes are slated to bring in $1.3 billion (look for lots of Spider-Mans and ghosts).

Boo baskets are the latest trend fueling this year’s spending (think: Easter baskets but full of fall goodies). From social media posts to blogs to Reddit channels, there’s no shortage of creative inspiration — or discourse on their cultural significance. As one person pointed out: “I’m thrilled not to be parenting in this era!”

Why it matters:

Given this year’s truncated holiday shopping season — there are only 26 days between Black Friday and Christmas — retailers have even more of an opportunity to nudge October shoppers with gift ideas or inspire them to return to stores to cross off everyone on their lists.