It’s going to be happy hauntings for retailers, as one in four Australians plan to celebrate Halloween this year. The Australian Retailers Association is expecting $430 million to be raked in over the period, with an average spend of $86 per person. The Party People’s chief executive Dean Salakas said that sales are typically strong when Halloween falls on a Saturday. He was expecting a downturn as Halloween falls on a Monday this year, but instead saw a 10-15 per cent incre
ent increase in activity compared to the previous year.
He adds that The Party People – which recently acquired Mega Party Warehouse – typically achieves about 20 per cent of its annual sales in October.
“Covid-19 mucked up the waters a bit, but we are smashing last year,” Salakas told Inside Retail.
“We are seeing a massive explosion on Halloween, which is kind of unprecedented given [the date it falls on].”
Salakas attributes this growth to a desire by consumers to go out, socialise and celebrate the festivities.
“Anything related to events is booming at the moment,” he said.
“Part of the reason Halloween is so big this year is that people are so excited to have fun, and that feeling is still lingering.”
Parents, adults and teens getting into the spooky season
According to ARA CEO Paul Zahra, Halloween has grown in Australia on the back of the ongoing globalisation of retail and retail promotions.
He believes that the trend is similar to Black Friday, which started as an American shopping tradition, before becoming popular in Australia over time.
“[Halloween] originated overseas, but has gained traction in Australia [as] it has increased its global appeal,” Zahra said.
Kmart divisional merchandise manager Rob Day has seen an increase in popularity of the discount department store’s Halloween range, as more families and individuals have become involved in the event.
“I personally believe the Halloween market size in Australia will continue to grow as we are back to enjoying those special moments together,” Day said.
Salakas contends that social media and the Americanisation of Australian culture has accelerated the development of Halloween in Australia.
“I’ve grown up observing Halloween from a party shop perspective,” he said.
“In the 1980s, no one was doing it. There were a few people in the 1990s and, in the 2000s, it kind of exploded,” Salakas said.
He said that the holiday is almost mainstream now.
“People don’t just dress up in scary costumes, they dress up in everything, and we’ve seen that trend here. It’s not just ghosts or zombies, it’s superheroes and characters from Squid Games and Stranger Things,” he said.
“They are also buying homewares and decorating inside their house. It’s for themselves, and to celebrate as a family.”
Cost of living challenges hidden by growth
While cost of living pressures are expected to hit retailers and consumers in the coming months, it doesn’t seem to be impacting the buzz around Halloween.
Day said that Kmart customers can take comfort in the brand’s accessible products, which won’t break their budget.
“Our Halloween range in particular begins from as low as $1 which is incredible value,” he said.
“Whether it be decorating the home or creating Halloween arts and craft activities with your family, everyone can access the Kmart Halloween range.”
Salakas suspects that cost of living challenges are likely to have impacted foot traffic and sales, but this has been absorbed by the popularity of Halloween.
“We’re up by 10-15 per cent, so if there is any [impact] it’s been hidden by that growth,” he said.
“A tick of approval for Halloween becoming more mainstream”
Due to the scale of the event – as well as the boon it has provided for many retailers – Zahra cautions retailers not to miss out on the event.
“We’re seeing more and more retailers embrace Halloween as a seasonal event, with in-store displays, decorations and Halloween themed merchandise,” Zahra said.
“It is a great time to celebrate some spooky silliness [and] the event will help build sales momentum for retailers in the run up to Christmas,” he said.
Meanwhile, Salakas is enthused by the growing competition around Halloween, which provides a sense of validation about their brand.
“The fact that [Woolworths] and Coles are talking to the media about their pumpkins, and are putting pumpkins on sale, I don’t see that as a threat, but a tick of approval for Halloween. It grows the event as a whole,” he said.
“The more the event grows, the better it is for us.”