Americans gear up for another Halloween season
For many Americans, Halloween is the perfect holiday to relive their youth. For a select few, they’ll take that fun-filled passion to extraordinary levels. In the upcoming weeks, they’ll spend countless hours, and money, converting their front yards into some morbid, ghoulish, post-apocalyptic landscape. They’ll accumulate a vast collection of pumpkins, of all shapes and sizes, that would cover even the mightiest of front porches. They’ll meticulously create ornate, highly-detailed costumes of their favorite Halloween characters. They’ll load up on bags-upon-bags of their favorite candy. To them, it’s all part of the fun that is the Halloween season.
And then I think back to the Halloweens of my early childhood. Our Halloween “decorations” consisted of a single, lonely pumpkin placed outside the front door. My costumes, by any account, weren’t excessively creative nor time-consuming to make. Each year, my mom would pull out an old bedsheet, cut out two circular eyeholes, and within three minutes my ghost “costume” was ready to go. Admittedly, my ghostly attire was less than stellar. Let’s be honest, it’s hard to look scary when the bedsheet your mom picked out is covered with pastel flowers. But, nonetheless, I was soon unleashed upon the local neighborhood on a sugary quest for free candy.
Despite high inflation, high interest rates and an uncertain outlook on the American economy, the retail industry remains fairly optimistic for this year’s Halloween season. This year, the National Retail Federation (NRF) expects Halloween shoppers to spend a record-high $12.2 billion on candy, decorations, costumes and related supplies – up 15.1% from 2022. On average, this equates to $108.24 per shopper. By comparison, the November-December Retail Holiday Shopping Season – the grandaddy of all shopping seasons – generated a massive $936.3 billion in sales last year. The Top 3 sources for consumers buying their Halloween items this year will be discount stores (40%), specialty Halloween/costume stores (39%) and online (32%).
The NRF projects a record-high 73% of all Americans will participate in some type of Halloween-related activity this season. According to the NRF’s survey, the No. 1 activity will be handing out candy. 68% of participating Americans will spend an estimated $3.6 billion on candy this year, up 16.1% from 2022. 53% are expected to decorate their home or front yard. The NRF projects Americans will spend $3.9 billion on Halloween decorations this year. 50% of Halloween participants will dress up in costume. Total spending on costumes is expected to reach $4.1 billion, up $13.9% from 2022.
Interestingly, of the $4.1 billion to be spent on costumes, Americans will spend $700 million on costumes for their pets. According to the NRF, the Top 3 pet costumes will be No. 1 pumpkin, followed by hot dog and bat. For adults, the Top 3 costumes will be witch, vampire and Barbie. For kids, it’s Spiderman, princess and ghost. For those kids who will be dressing up as ghosts, I hope the bedsheet your mom picks out doesn’t come with pastel flowers.
And to you, the readers, I wish you all a very fun and safe Halloween season.
Mark M. Grywacheski, Investment Advisor
Quad Cities Investment Group is a Registered Investment Adviser.
This material is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Quad Cities Investment Group and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Quad Cities Investment Group unless a client service agreement is in place.
