Welcome to the Spooktacular Side of Halloween Logistics

October 17, 2017 by FreightCenter Team
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As soon as the shelf space dedicated to back-to-school supplies clears out, in come all things black and orange as retailers stock up for Halloween. To accommodate the demand for Halloween costumes, decorations, and merchandise, pop-up stores begin opening in abandoned retail spaces as early as Labor Day and close shop once Halloween is over. The pop-up Halloween retail store isn’t one that flies by the seat of their pants though, it’s one that requires ample planning all year long. The logistics that go into pop-up stores includes finding the right location, securing retail space, and building inventory.

The Growth of Halloween Logistics in Recent Years

With 179 million Americans planning to celebrate the spookiest holiday of the year, Halloween pop up stores are booming with sales and scrambling to keep enough inventory on the shelves. It’s estimated that the average spend per buyer will reach an all-time high of $86.13—up from $82.93 in 2016. Collectively, Americans are expected to break records with a $9.1 billion spend on this year’s Halloween.

Where Does All the Money Go?

Shoppers are always looking to get the most bang for their buck, and Halloween is the perfect holiday to do just that. Compared to other holidays such as Christmas where the average American spends an average of $500-1000, Halloween is a rather affordable holiday. Although more than two-thirds of Americans hand out candy, they only spend around $25 each on sweet treats. And how much is spent on Halloween décor? Most spend a reasonable amount—at just $30 per person on Halloween decorations. The most expensive part of Halloween comes down to the Halloween costumes. While men plan to spend $96 each, women spend closer to $77 each—as a result, only about half of Americans opt to buy costumes. And we can’t forget about the 16% of people who dress up their pets, which adds up to about $330 million in spending nationwide.

How Halloween Sales Affect the Economy

Halloween is thought of as the soft start for holiday retail spending. The true kick-off isn’t until Black Friday, a month later. Halloween sales serve as a marker for retailers, as statistics are indicative of consumer demand, and that’s what drives the U.S. economy. The retail industry alone produces 5.9% of U.S. gross domestic product. Strong retail sales will mean it’s more likely the Fed will raise interest rates in December.

With so many moving parts that are integral to Halloween, it is no wonder that consumers, retailers, and manufacturers have their hands full this month. While consumers are buzzing to scoop up the newest Halloween merchandise—retailers and manufacturers are busy trying to prepare for Halloween but also for the entire upcoming holiday season. While the rest of us enjoy Halloween traditions like pumpkin carving and costume shopping, retailers everywhere are rushing to get ready for the next round of holiday sales.

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