HALLOWEEN COMES HOME

STEPHANIE LOUGHRAN

Supermarkets are hoping the trick-or-treaters stay home this year to celebrate Halloween with costume parties and pumpkin-carving rituals.

Last year's Halloween sales were downright frightening because of the holiday's proximity to the Sept. 11 terror attacks. But retailers told SN that they expect home decor accents, costumes and safety-related general merchandise like flashlights and glow sticks to energize the 2002 season.

"We're hoping sales will be stronger than last year," said Gordon Thompson, seasonal category manager, Associated Food Stores, Salt Lake City. "Numbers were down. Parents didn't want their kids to go out last year," he said.

"We certainly saw soft sales last year. Halloween was so close to 9/11 that if you based [sales projections] on last year, it would be scary," said Joel Wilson, general merchandise coordinator, Hy-Vee, West Des Moines, Iowa.

Retailers are focusing on home decorating for Halloween, the top season for the category behind Christmas, the juggernaut of seasonal decor.

"Home decor is the biggest seller, and it has been for a couple of years," said Betsy Turgeon, category manager, general merchandise, Big Y Foods, Springfield, Mass. The effects of Sept. 11 caused people to "stay home and enjoy their homes and families, and they are spending more money on decorating," she said. She expects consumers to stay close to home again this year, as Halloween's Thursday date should spur parties for that following weekend.

Home decorating spikes large revenues for the category, Thompson agreed. "People don't have time to do crafty things anymore," he said. "It's easier and cheaper to buy a piece of home decor."

Halloween garnered $586.4 million in the seasonal decorations segment in 2001, according to the Gifts & Decorative Accents 2002 Report produced by Unity Marketing, Stevens, Pa.

Overall, consumer spending on the holiday reached $6.9 billion in 2001, which translates to an average of $45 per household, reported the National Retail Federation, Washington.

Aside from merchandising the perennial pumpkin-carving kits, retailers are expanding their seasonal offerings with a broader autumn theme to extend seasonal sales.

"People are focusing on the fall harvest aspect," Thompson said. This includes displays of wreaths, wall hangings and wicker, straw and trendy tin home accents.

Ship dates for these products begin in mid-August, Thompson said. "It's important to have a presence so [customers] know you're in the business. For grocery, it's especially important because it's not a destination [category]."

A category manager at a Midwest-based chain who asked not to be identified agreed that August was the ideal target month to showcase Halloween-related goods.

"We get more of a sales opportunity," she said. Last year, the retailer started decorating its 16-foot seasonal gondolas with window clings, porcelain figurines and party goods in September. "We were two weeks behind," she explained.

An August Halloween showcase helps the grocery channel keep competitive with mass merchants, Wilson said.

Presentation of Halloween-themed aisles is another important selling strategy, said Dean Owens, vice president of general merchandise, Minyard Food Stores, Coppell, Texas.

"Our main objective is to make it an event," he said. "We've seen Halloween grow, and it's still a growing part of our business." The retailer displays candy and general merchandise items together to create the "event" atmosphere, Owens noted.

Other general merchandise related to creating a safe trick-or-treating environment, like flashlights, batteries and glow sticks see monstrous sales bumps, said retailers.

"We always look for an opportunity to sell more batteries and flashlights because of the safety aspect," said Wilson. While each Hy-Vee store is autonomous and sets up its Halloween seasonal aisle differently, the stores "definitely make it a priority."

Other products related to the season, like gloves, socks, light bulbs and candles also draw sales lifts. "Decorative lights see the real influx of the business," Wilson said.

Halloween costumes derived from trendy licensed movie characters like those in "Men in Black II" and popular television characters like Nickelodeon's SpongeBob SquarePants will continue to do very well, Wilson added.

In-store safety centers that display a variety of flashlights, batteries, light bulbs, light reflectors and glow sticks are another way to create a Halloween destination inside supermarkets, said Mary McCarthy, Omniglow, West Springfield, Mass., manufacturer of Monster Glow novelty products.

"With cross promotions, retailers can make the season even larger," she said.

The country's patriotic spirit is expected to carry over to Halloween, as red, white and blue flashlights and strobe lights, along with police officer and firefighter costumes, are projected to be big sellers this year, retailers said.

Cross-promotional programs with pumpkins is another unique opportunity for supermarkets, said Josh Crosier, national sales manager, Pumpkin Masters, Denver, which makes pumpkin-carving kits.

"Supermarkets can tie sales of Halloween items in general merchandise such as pumpkin carving kits and candles to the sales of their pumpkins," he said.

Supermarkets can also capitalize on Halloween general merchandise by promoting in-store events like pumpkin-carving contests and costume contests, said Gay Burke, president and chief executive officer, Pumpkin Masters.