Halloween Spending to Increase

Americans this year will spend considerably more on Halloween than last year, according to NRF’s 2010 Halloween Consumer Intentions and Actions Survey. Americans will spend an average of $66.28 this year on costumes, candy and decorations, up from $56.31 last year and on par with 2008 levels. Total spending is supposed to amount to $5.8 billion.

“In recent years, Halloween has provided a welcome break from reality, allowing many Americans a chance to escape from the stress the economy has put on their family and incomes,” said NRF President and CEO Matthew Shay. “This year, people are expected to embrace Halloween with even more enthusiasm, and will have an entire weekend to celebrate since the holiday falls on a Sunday.”

According to the survey, costumes take up the largest portion of an individual’s budget, at $23.37, to go with candy ($20.29), decoration ($18.66) and greeting cards ($3.95). Four out of 10 people surveyed said they planned to dress up for the holiday, the highest percentage in the survey’s history. One-third of those surveyed plan to throw or attend a party.

About 30 percent of consumers say the state of the economy will impact their Halloween plans, with most saying they will spend less overall. Others plan to buy less candy (45.1 percent), reuse decorations (30.7 percent), reuse costumes (18.5 percent) and cut back on activities like visiting haunted houses (22.3 percent).

“Though Halloween spending will be much more robust than a year ago, consumers will still err on the side of caution,” said Phil Rist, Executive Vice President, Strategic Initiatives, BIGresearch. “Americans are excited about Halloween but are still being frugal and pinching their pennies where they can.”