FEAR FACTOR: GROCERY TRAILS IN CANDY SALES

SARAH MULHOLLAND

WASHINGTON -- While Halloween sales continue to grow across categories, a majority of shoppers do not intend to buy Halloween candy from a supermarket this year, according to a recent survey conducted by the National Retail Federation here.

Fifty-four percent of the 1,003 households polled plan to buy Halloween candy from a discount retail store; 22% plan to buy from a drug store; and only 13% plan on choosing a grocery store.

Respondents in the Northeast were the most likely to buy their candy from the supermarket at 17%. Those least likely to buy candy at the grocery store were shoppers in the West at 11%. Shoppers in the South and the Midwest were about even with roughly 12% of respondents choosing the grocery channel in both regions.

On a more positive note, the survey suggests that the individual shopper is planning to spend an average of $17.60 on candy this year, compared with $17.40 last year.

John Majar, director of operations at Green Hills Farm, an independent operator in Syracuse, N.Y., said Halloween candy sales at his store have remained relatively stable despite competition from alternative channels. He attributes this success primarily to aggressive price points.

"The week before Halloween is one of the few times we go head-to-head with the mass marketers. We concentrate on the fun sizes, and we usually have price points at or below those at mass," Majar told SN.

For the past several years, as much as 80% of his candy business has been in the fun sizes during the Halloween season, he added.

According to Ellen Tolley, a spokeswoman for the NRF, the holiday is worth an estimated $6.9 billion this year, including the sale of candy, costumes and decorations. In 1995, that figure was $2.5 billion.

"Adults are becoming more interested in this holiday," Tolley said. "People are having parties, and Halloween is becoming more of a seasonal event. We are seeing retailers putting candy out as early as September, and sales are increasing due to the longer selling period."

Indeed, Majar targets the mature audience during the preceding months. This year, the retailer mailed a coupon for a free Ghirardelli chocolate bar to the store's best customers. "Obviously, these are not going into a child's trick-or-treat basket. This is an item that may be given as a hostess gift at an adult's Halloween party."