Spirit Halloween reawakens to cannibalize stores

Retailer plans more openings while competitors face closures

National /
Oct.October 12, 2020 02:36 PM
Spirit Halloween is seeing more openings than ever before this year (Getty)

Spirit Halloween is seeing more openings than ever before this year (Getty)

Autumn is a time for falling leaves, pumpkin pie and Spirit Halloween reappearing to take up unoccupied space in strip malls and commercial corridors.

This year, even as trick-or-treating becomes an unknown, there are more Spirit Halloween locations to go around.

The company has opened more than 1,400 storefronts nationwide, an increase from last year, according to the New York Times.

The reemergence comes even as competitors close up shop. Party City, for example, has reduced the number of Halloween City pop-up stores it is opening this fall by 91 percent.

The reason for Spirit Halloween’s optimism is its business model of signing temporary leases to fill vacant space, of which there is plenty at the moment, and its concentration of sales in September and October, meaning it was not hurt by Covid shutdowns in the spring. The store “is out of step with most normal retail concepts,” Andy Mantis, a retail analyst for the firm 1010Data, told the Times.

While in 2019, typical party stores generated 29 percent of their annual sales between Labor Day and Halloween, for Spirit Halloween, 90 percent of revenue was generated then.

Lower real estate costs also mean more potential to open stores, according to Mantis.

Still, the lack of Halloween festivities is expected to result in an $8 billion drop in spending this year — a reduction of approximately 8 percent from last year, according to the National Retail Federation. [NY Times] — Sasha Jones


Related Articles

arrow_forward_ios
Google CEO Sundar Pichai (Getty, iStock)
Google’s hybrid model will allow 20% of employees to work remotely
Google’s hybrid model will allow 20% of employees to work remotely
Illustration of Amazon's Jeff Bezos (Photo illustration by Kevin Rebong for The Real Deal)
No room in the warehouse: Amazon fuels shortage
No room in the warehouse: Amazon fuels shortage
RXR Realty's Scott Rechler with 75 Rockefeller Plaza (Getty, David Shankbone/Wikimedia)
RXR Realty serves American Girl with a lawsuit
RXR Realty serves American Girl with a lawsuit
SL Green’s director of leasing Steve Durels and One Vanderbilt. (SL Green, One Vanderbilt)
SL Green to offer flex offices at One Vanderbilt
SL Green to offer flex offices at One Vanderbilt
Katie Kurtz and Silverstein Properties chairman Larry Silverstein (Silverstein, Getty)
Silverstein Properties hires Katie Kurtz as new CFO
Silverstein Properties hires Katie Kurtz as new CFO
U.S. District Court Judge Dabney Friedrich (Senate/Chris Coons, iStock)
Judge strikes down federal eviction ban
Judge strikes down federal eviction ban
Sen. Brian Kavanagh and RSA President Joe Strasburg (Getty, Strasburg via Jeffersons Siegel)
Rent relief hinges on dwindling goodwill
Rent relief hinges on dwindling goodwill
Colliers International CEO Jay Hennick (Colliers, iStock)
Colliers’ acquisitions help boost company’s Q1 revenue
Colliers’ acquisitions help boost company’s Q1 revenue
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...