Halloween Shoppers Scared of Economy

NRF Survey Suggests Cutbacks:
The National Retail Federation’s (NRF) annual survey found that 30% of consumers will be frightened by more than just ghosts and goblins this year. This data comes from the 2009 Halloween Consumer Intentions and Actions Survey, conducted by BIGresearch. Of the affected consumers, 88% are planning to spend less on Halloween. Phil Rist, the Vice President of strategic initiatives at BIGresearch is not surprised by the results. “The overriding theme for Americans’ Halloween celebrations this year will be, ‘How creative can I be and how little can I spend?’” claims Rist.

Halloween ranks as the largest shopping season in America behind only Christmas and Back-to-School. In 2006, the NRF found that almost two-thirds of American households celebrate the holiday. Despite the growing market, sales are still estimated to be down in 2009. This year’s survey reported expected sales to be $4.76 billion. That’s down from the earnings of $4.96 billion in 2006.

Less, Costumes, Candy, College Spending:
In the survey, approximately 16% of affected consumers claimed they will not purchase a new costume. This could make a slight impact in sales by holiday-themed stores such as Spirit and Halloween Express. Candy sales are also expected to fall. While the numbers of people who plan to pass out treats remain relatively stable, 46.5% of affected consumers plan to spend less money on candy. This could be a problem since the National Confectioner’s Association estimates that 93 percent of American children go trick-or-treating every year. Therefore, lollipop and bite size Snickers bar sales will give the economy a boost, but the overall drop in sales could mean fewer pieces per person. So kids, better play it safe and make a back-up costume. That way you can visit some houses twice!

The NRF notes that college students and young adults may be affected the most by the economy. According to the survey, the average consumer will spend $10- $11 less than last year, while the average 18-24 year-old will spend $17- $18 less. C.J. Borer, a senior in the College of Technology, claims that his cutbacks will be on buying treats this year. “I don’t plan on buying candy to eat,” said Borer, “and also there is really no trick-or-treaters to give it to.”

My Take:
It’s important to note that lower spending is expected, but not guaranteed. Halloween falls on a Saturday this year, which means that more people will be having parties over the weekend. This will definitely provide a much needed boost for costume, decoration, and food sales. Also, trends throughout this recession have shown that although people are willing to cut back in some areas, they can be hesitant when it comes to giving up their entertainment. In addition, the economy is slowly but surely recovering. As a result, expected losses may end up being less than originally projected. Most importantly, Halloween is celebrated only once a year. Therefore, consumers may feel that it is worth it to increase their purchases. A combination of these factors may result in a happier Halloween than the NRF suggests. Hopefully, the recession will not scare too many consumers away. Halloween is always more festive when people spend more time trying to scare each other!