Record-Breaking Halloween: Sales Reach $6 Billion

http://www.businesswire.com/news/home/20091013005376/en

Holiday Sales Un-Spooked by Recession According to IBISWorld Data
LOS ANGELES--(Business Wire)--
Despite economic gloom casting a spell on consumer confidence this year,
America`s darkest holiday is looking bright for retailers. According to industry
research firm IBISWorld, Halloween sales are expected to reach a record-breaking
$6 billion in 2009, up 4.2 percent from the $5.77 billion generated last year.

"Economic recovery appears to be around the corner and consumers are
enthusiastically looking to escape their recessionary woes," said Toon van
Beeck, senior analyst with IBISWorld. "Even last year, when the outlook was much
worse, the Halloween spirit remained unhindered as we saw total sales actually
jump 5.1 percent from 2007."

Halloween retail sales are comprised of a wide range of consumer goods, aimed at
adults, children, and even pets. These goods include costumes, scary make-up,
wigs, Halloween decorations for inside and outside, and of course, pumpkins and
candy, among other things.

In projecting this year`s total sales, analysts at the Los Angeles-based firm
aggregated the retail-dollar performance of the following four traditional
Halloween categories:

Category 2008 Revenue 2009 Revenue % Change
(Billions) (Billions)
Candy $1.77 $1.89 6.8%
Decorations $1.58 $1.65 4.4%
Costumes $2.07 $2.12 2.4%
Greeting Cards $0.35 $0.35 0.0%

It appears an increasing number of people are buying treats this year, making
candy the fastest growing holiday category. The average person is estimated to
spend about $22.50 on Halloween treats in 2009.

Also fuelling this year`s record-breaking sales is the demand for holiday
decorations. With Halloween falling on a Saturday this year, more adults are
expected to join the fun. In fact, 32 percent of people celebrating the holiday
will either host or attend a party. For this reason, IBISWorld expects
decorations to reach its highest level yet at $1.64 billion.

"Halloween-related festivities are a growing trend and this is driving sales of
decorations and candy," adds van Beeck. "Dollar and variety stores stand to
benefit from the 4.4 percent increase in decoration sales, as consumers look to
purchase cheap and disposable thrills to make a memorable evening."

Call it escapism or just good, old-fashioned fun, Americans of all ages show the
desire to go all out when it comes to dressing-up. Costumes are expected to
generate the greatest amount of revenue this Halloween, but growth is slight
(2.4 percent) as consumers will apply more frugal but creative approaches when
shopping.

"Despite more people participating in festivities, money is still tight and
consumers will look to cut corners when it comes costume purchases," said van
Beeck. "Instead of buying a packaged costume, which can cost up to $60 on
average, people will get more eclectic and opt for cheaper individual items."

But given the lack of growth for the card category, not all cheaper items will
fare well this year. While cards did well last year, as consumers chose to cut
back on pricier categories, 2009 expenditures will revert back to traditional
shopping habits.

"Although unemployment is still very high, the overall outlook is far rosier
today than it was this time last year," adds van Beeck. "For this reason,
IBISWorld expects the upward trend in Halloween expenditures to continue its
course for 2009, which despite economic conditions will prove to be the best
year yet."

Additional links

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Candy Production: http://www.ibisworld.com/industry/retail.aspx?indid=234&chid=1

Gift Shops & Card Stores:
http://www.ibisworld.com/industry/retail.aspx?indid=1099&chid=1

Greeting Cards & Other Publishing:
http://www.ibisworld.com/industry/retail.aspx?indid=1235&chid=1

Formal Wear & Costume Rental:
http://www.ibisworld.com/industry/retail.aspx?indid=1369&chid=1

About IBISWorld, Inc.

Recognized as the nation`s most trusted independent source of industry and
market research, IBISWorld offers a comprehensive database of unique information
and analysis on every U.S. industry.With an extensive online portfolio, valued
for its depth and scope, the company equips clients with the insight necessary
to make better business decisions.Headquartered in Los Angeles, IBISWorld serves
a range of business, professional service and government organizations through
more than 10 locations worldwide.For more information visit www.ibisworld.com or
call 1-800-330-3772.

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IBISWorld, Inc.
Savannah Haspel, VP-Media Relations
310-866-5044
savannahh@ibisworld.com
www.ibisworld.com
or
Jennifer Zyzanski, Communications Coordinator
310-866-5028
jenniferz@ibisworld.com

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