This year, Halloween will not be the treat that retailers are hoping for with spend forecast to grow by just 0.6% (compared to +2.0% in 2018) to reach £467.3m as shoppers limit spend on this occasion, according to GlobalData, a leading data and analytics company.
Halloween decorations and clothing/costumes present the greatest opportunity for retailers to capitalise on this retail occasion, with these categories making up over half of Halloween spend. However, while in 2018 shoppers splurged on Halloween, decorating their homes and investing in costumes, more consumers will be looking to reuse pieces or trade down to save on costs this year. Costumes will be among the worst affected with this market forecast to grow by just 1.1% on last year versus 3.4% in 2018.
Zoe Mills, Retail Analyst at GlobalData commented: “The Brexit deadline of 31 October will have a significant impact on Halloween this year. UK consumers have been investing more in this occasion over the past couple of years but will now be limiting their spend. For value and discount retailers, there will still be opportunities to entice spending in areas where shoppers plan to trade down in – for example, food categories such as sweets for trick or treating.
“Greater environmental concerns will impact the market this year as plastic use has been at the forefront of shoppers’ minds. The commercial nature of this event has seen a number of consumers aim to limit plastic waste, and retailers must highlight their own thoughtfulness regarding this topic by highlighting sustainable solutions such as biodegradable glitter and non-plastic accessories such as wooden broomsticks. Alongside this, clothing brands targeting the adult costumes market in particular should be creating ‘How to’ guides to show how shoppers can utilise everyday clothing for costumes to ensure that these purchases are worn more than just once.”