Halloween is a great indicator of retail sales for the season as a whole. But it’s also a unique opportunity to drive specific, targeted marketing tactics to stand out and boost your bottom line.

Many shoppers start shopping for Halloween early, with September a key time to launch marketing. Offering discounts and merch aimed at this eager segment is a surefire way to draw in customers.

Price

Halloween is a unique holiday, offering a combination of fun and nostalgia that appeals to consumers. As a result, it can be an important source of revenue for retailers. In 2024, total spending on costumes, candy and decorations is expected to reach $11.6 billion, according to the National Retail Federation. This is a slight decrease from last year, when consumers spent $12.2 billion on Halloween-related items.

Despite the slow start to the season, many shoppers are enthusiastic about Halloween this year. A recent survey by LendingTree found that millennials are planning to spend the most on Halloween, followed by Gen X and baby boomers. Using targeted marketing campaigns, retailers can reach these different generations to maximize sales.

As consumers gear up for the Halloween season, they are looking to score deals and savings. In fact, 45% of respondents to the LendingTree survey started shopping for Halloween costumes and supplies earlier this year than they did last year. Moreover, 56% of shoppers between the ages of 25 and 34 are planning to purchase their costumes before October.

One major reason for the earlier purchases is a lack of inventory, especially in costume stores. Since most Halloween products are made abroad, retailers must order early to get their merchandise in time. This means that if the shipment of new merchandise is delayed, the stores may have to discount old stock in order to sell it.

Unlike other holidays, such as Christmas, Halloween inventory is not held until November or December, which gives retailers the opportunity to reduce their price to stimulate sales. This is particularly useful for retailers who are facing softening traffic trends and want to boost their seasonal sales.

However, relying too much on Halloween as a revenue driver could backfire. For example, Party City suffered from this phenomenon in the past, going bankrupt in 2017 before reemerging with a more modest store base. Similarly, Michaels is experiencing declining same-store sales and has been shifting its focus to other holiday seasons.

Time

While shoppers have been price-conscious throughout 2024, Halloween merchandise is one category where they’re willing to splurge. Retailers that understand this and entice shoppers with deals, value propositions, and creative merchandising can make the most of the frightfully profitable holiday.

In the past, Halloween merchandise hit stores in mid-October, but now consumers are able to shop early and often. For example, a quick glance at the crafts, home goods and even grocery aisles of major retailers in July and August will reveal pops of orange and black. In addition, e-commerce sites are offering Halloween collections, including costumes and decorations, much earlier than usual this year.

According to the National Retail Federation, more than half of US consumers will begin their Halloween shopping over the summer. That may be because of a new phenomenon known as “Summerween,” which takes its name from the Disney+ series “Gravity Falls.” Regardless of why, shoppers are starting to plan their Halloween purchases well ahead of the actual date.

This year’s frightfully early holiday momentum may also be driven by the growing popularity of “group costumes.” Many consumers are looking to purchase multiple costumes instead of a single one, and some are opting for themed duo costumes like Mario Bros. and Luigi. To capitalize on this, retailers should consider stocking popular duo and group costume options for both men and women.

Despite the strong consumer enthusiasm for Halloween, total spending is projected to be a bit lower this year. That may be because shoppers will be choosy about their costume and decoration selections, and because they may wait to see what’s available at their local stores before making their final buying decisions.

The key for retailers is to capture and hold customers’ interest early in the season. To do this, they need to create a sense of urgency by releasing their Halloween products at the right time and by promoting them in the right channels. For example, retailers can use email marketing to retarget customers with discounts and other offers when they are most likely to be ready to buy. They can also run social media campaigns or partner with influencers to promote their Halloween merchandise.

Product

The Halloween retail juggernaut may seem to defy economic trends. Consumers spent $12.2 billion on costumes, decor and candy last year. However, the US economy is shaky, and consumers are hesitant to spend in other categories, like electronics and apparel. Despite economic uncertainties, Halloween remains a prime shopping occasion, with annual spending consistently reaching over $11 billion on Halloween products in recent years.

To fend off the threat of declining sales, many retailers are bringing Halloween products to market early. Home Depot started selling the season’s decorations in August, and Michaels unveiled its Halloween inventory as early as June. While the tactic may be effective in terms of increasing sales, it could also cause confusion for shoppers who are trying to figure out what they should buy, and when.

Consumers are price-conscious, and looking for ways to enjoy Halloween without breaking the bank. Offering value deals or promotions will help them feel good about their purchases. In addition, it’s important to offer a variety of price points to appeal to all shoppers. Discount stores are the most popular Halloween shopping destination in the US, but specialty retailers, online and catalogs are also growing in popularity.

Another way to boost sales is to create a unique brand identity. Target, for example, has built a cult following with its Halloween line of adaptive costumes that align with the wearer’s mobility and sensory needs. The company’s approach is a great example of how a retail brand can stand out from the competition by focusing on its unique product line and offering innovative experiences for loyal customers.

The Halloween season is short, and retailers need to be nimble when it comes to forecasting demand. Over-producing Halloween products can lead to inventory overhang and costly markdowns on November 1st. To prevent this, retailers should be able to act more strategically by using historical and real-time data to understand how their products perform and respond to market shifts.

Promotion

Halloween is a unique opportunity to connect with customers. It’s an event that celebrates creativity, which gives businesses the perfect opportunity to show off their products and services to a targeted audience.

According to NRF, consumers are expected to spend $11.6 billion this year on Halloween-related purchases, including costumes, candy and decorations. This is down from last year’s record high of $12.24 billion, but still significantly higher than the $8 billion spent in 2020. Costumes are the biggest ticket item, with an estimated $3.8 billion spent on them. However, there is no doubt that candy remains the most popular treat.

Younger shoppers, ages 25-34) are driving the early shopping trend. The top reasons they’re buying Halloween items earlier than ever are to avoid the stress of last-minute shopping and because Halloween is one of their favorite holidays.

To reach these younger shoppers, it’s important to make the purchase process as quick and easy as possible. This means providing a mobile-friendly site, social media accounts and email campaigns that offer a convenient, hassle-free shopping experience.

The email subject line is also an important factor in generating interest and increasing click-through rates. Food delivery service Uber Eats does this well with a subject line that speaks to the worst Halloween nightmare – running out of candy! Other creative, spooky or attention-grabbing subject lines include “Enter if you dare” and “Creep it real with ghoulish savings”.

Offering exclusive offers to your email subscribers is another effective way to boost sales during Halloween. Product bundles are a great example, as they allow customers to get more value for their money. They can also be a great incentive to attract new customers.

In addition to offering limited-time promotions, it’s a good idea to give back this Halloween. Consider donating a percentage of your profits or free products to a local charity or cause. This will not only boost your brand image, but it will also make your customers feel good about doing business with you.