Spirit Halloween reawakens to cannibalize stores

Retailer plans more openings while competitors face closures

TRD 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
Nightingale's Elie Schwartz and Madison's Brian Shatz (Whale Square)

Nightingale buys Whale Square in Sunset Park for $84M

Nightingale buys Whale Square in Sunset Park for $84M
Investors worry that New York City’s battered commercial real estate sector is indicative of larger issues nationwide with hotels, restaurants and retail. (iStock)

New York’s CRE woes could spread nationwide: investors

New York’s CRE woes could spread nationwide: investors
Subversive CEO Richard Acosta (Photos via ICSC; iStock)

Riding high: Inception, Subversive to launch publicly traded cannabis REIT

Riding high: Inception, Subversive to launch publicly traded cannabis REIT
Gov. Andrew Cuomo announced that movie theaters in some New York counties can reopen, but NYC’s theaters are excluded for now. (Getty; iStock)

Cuomo: Movie theaters can reopen — but not in NYC

Cuomo: Movie theaters can reopen — but not in NYC
Renderings of Target at Cross County Center in Yonkers and Target CEO Brian Cornell (Photos via Marx Realty; Getty)

Target to open in Yonkers

Target to open in Yonkers
Blackstone’s Stephen Schwarzman, Roku CEO Anthony Wood and Coleman Highline in San Jose (Blackstone; Wikipedia Commons; Coleman Highline)

Blackstone buys Roku’s Silicon Valley office buildings

Blackstone buys Roku’s Silicon Valley office buildings
IKEA Chief Sustainability Officer Pia Heidenmark Cook (IKEA, iStock)

Ikea will buy back your old furniture on Black Friday

Ikea will buy back your old furniture on Black Friday
107 Chambers Street and Allison and Frederick Thompson (Google Maps, Tribeca Health & Fitness) 

Another fitness studio in Manhattan goes belly-up

Another fitness studio in Manhattan goes belly-up
arrow_forward_ios

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

Loading...