Oct 29, 2008
Retailers Get a Treat This Halloween As Spending Tricks Recession

LA — While the economy is facing its darkest days in decades, one small sector is defying the downward trend. With 17 percent of the population actively participating in Halloween activities, total retail spending this Halloween will be up 5 percent — to $5.77 billion — according to IBISWorld Inc, one of the nation’s most respected independent publishers of business research.

IBISWorld believes there are two main factors contributing to growth in Halloween sales: higher prices and pure escapism. Anxious families that have been consumed by the instability of the financial markets will view Halloween as an opportunity to forget about their finances and have some fun.

“Back in 2002, when economic growth was fairly soft following the events of September 11, we saw strong spending at Halloween,” explained George Van Horn, senior analyst at IBISWorld. “Retailers will be pulling out all the promotional stops to ensure this year follows the pattern of 2002.”

According to IBISWorld, this year’s Halloween sales can be broken down into four product segments:

Costumes – 35.9 percent
Candy – 30.5 percent
Decorations (including pumpkins) – 27.4 percent
Greeting cards – 6.2 percent

Reports reveal that when suiting up for Halloween consumers typically choose to buy, rather than rent their ghoulish gear. The total market for costume rental and purchases is worth $2.1 billion a year – 70 percent of which is derived from Halloween – while the rental sector is worth $200 million annually as a stand-alone segment.

As for the traditional pumpkin, the majority of Americans buy from their regular supermarkets and greengrocers, whilst non-urban districts individual growers and farmers covering their front lawns with pumpkins should do a roaring trade from passing traffic and local families in the know. Total domestic pumpkin production this year for Halloween alone will amount to 116 million units, with sales worth $123.4 million.

About IBISWorld, Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every U.S. industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information visit www.ibisworld.com or call 1-800-330-3772.