It’s that time of year again. No, not Christmas (yet…), but Halloween.
The ghoulish ‘holiday’ has, in the past, only truly been embraced by our compatriots across the Atlantic. However, in recent years it has gained a strong foothold in the hearts, minds and, importantly for retailers, wallets of the Brits.
In America, an estimated 157 million people will celebrate Halloween in some way this year, with spending set to total $6.9 billion. An increasing number of ‘pop-up’ stores focusing on Halloween is just one reason behind this level of spend.
Creating a Monster Spend
In 2014, total spend related to Halloween in the UK was estimated at £443 million, made up of the following spend:
- £148 million on clothing and costumes
- £132 million on Halloween themed food
- £92 million on decorations
- £70 million on entertainment and stationery
If you think that is scary, then further research has also found that in 2015:
- 29 per cent of UK consumers plan on purchasing some form of Halloween related goods
- Just 23 per cent of males will purchase something, but will spend an average of £48 each (£20 more than females)
- 40 per cent of parents will spend on Halloween goods
- 55 per cent of buyers will be purchasing clothing
- 52 per cent of shoppers will purchase food and drink
Jack ‘No’ Lantern
However, despite it being part of the traditional Halloween offering, only 45 per cent of people plan on buying a pumpkin this year.
The news gets worse for any amateur pumpkin carvers out there, as a wet August and less than ideal growing conditions has led to a shortage of pumpkins this year, with yields down to 50 per cent.
Nightmare on Supply Chain Street?
Supply chains will be well prepared for Halloween far in advance of actually getting products into the shops. But the variety of goods on offer could spook many organisations.
Going crazy with seasonal products can put a huge strain on supply chains, cost organisations considerable sums of money, but ultimately not provide a return should the product fail.
From a Logistics point of view, goods need to be delivered at just the right time to stop competitors ghosting in, but not going so early that consumers are trying to carve mouldy pumpkins.
Take into account planning this around Thanksgiving, Black Friday, Cyber Monday and Christmas and it could suck your resources dry.
Trick or Treat
As these holidays continue to get bigger, it provides both manufacturers and retailers with some tough choices. Don’t get involved enough and you might miss out on that sales bump, make too much and you may end up discounting products you can’t use for another 365 days.
The most successful will asses the situation and work out the best way to be involved, while the consumers will just enjoy the ever-expanding list of products they can get their hands on.
But, if Halloween isn’t your thing, just think, it’s only 53 shopping days until Christmas…