(Reuters) - Consumers started shopping for Halloween decor and costumes well before October this year, taking advantage of special events, even though overall spending has decreased from last year's record high, data from the National Retail Federation (NRF) showed on Thursday.
WHY IT'S IMPORTANT
Interest in Halloween shopping is usually driven by individuals aged 25 to 34 years and data from the NRF shows that 56% of shoppers within this age group kicked off their shopping before October.
This year, retailers have rushed to bring in their holiday season and Halloween shipments early, hedging against potential strikes by port workers and shipping disruptions.
Despite recent increase in cocoa prices, candies are still expected to remain the most popular category, with total spending projected to reach $3.5 billion.
CONTEXT
As the holiday season approaches, consumer spending is set to be closely monitored, as retailers roll out early promotions on items such as electronics, apparel and home decor.
With the Federal Reserve delivering an expected 50 basis point interest rate cut this week, consumer sentiment is expected to improve, while retail sales remain steady due to strong online spending.
KEY QUOTE
"Consumers are still prioritizing these events, especially Halloween, which has become a moment of great cultural significance in the U.S. over time," Katherine Cullen, NRF vice president, industry and consumer insights, said.
BY THE NUMBERS
Total spending is projected to reach $11.6 billion, down from 2023's record high of $12.2 billion, according to NRF data.
Still, per-person spending is expected to fall by only $4.6, with Cullen pointing out that individual expenditures remain elevated, compared to the levels in 2022 and 2019.
Shopping for Halloween and the fall season began before October for 47% of shoppers surveyed by the NRF, an increase from 37% five years ago.