By Bob Johns
The specialty retailer is set to capitalize on Halloween with an estimated nearly $125 million in sales at Spirit Halloween.
Most retailers bring in the majority of their sales in just a few seasons, usually centered around the December holidays. Spencer Gifts, however, has another season that gives them a ghoulish grin, Halloween. Spencer Gifts is the parent company of Sprit Halloween, the seasonal pop-up chain that dominates formerly empty retail spaces this time of year.
The company has gone from 63 in 1999 to over 1,050 in 2013, carrying a complete selection of costumes and accessories for infants/toddlers, children, 'tweens, teens, and adults. The company also carries a broad assortment of décor and party goods complete the Halloween story. A significant portion of the selection is exclusive merchandise found only at Spirit Halloween, giving them a leg up on the competition.
This year, the company is celebrating 30 years in business. “Spirit Halloween provides consumers with the most relevant and timely costumes based on what’s happening in the world of pop culture,” said Steven Silverstein, president and CEO, Spirit Halloween. “With 30 years in the Halloween business, we know what consumers want and always deliver the best selection of costumes, accessories and home décor to make this year’s celebrations memorable for all.” This has led the company to account for nearly half of Spencer’s estimated $250 million annual revenue.
This year, the company is counting on adult costumes like the Twerk Couple, featuring designs inspired by Miley Cyrus and Alan Thicke’s infamous VMA performance, Duck Dynasty’ Si, Walking Dead’s lead characters and zombies, and even the Anchorman films’ Ron Burgundy to push sales even higher. At the same time, the classic children’s costumes — like Spongebob, various Disney Characters, and Teenage Mutant Ninja Turtles — continue to perform well.
One of the ways Spirit Halloween is able to really contribute to the bottom line is through repurposed inventory. Rather than slashing prices and margins, the company is able to sell the same classic costumes next season. By storing the product, rather than selling it at steep discounts, the company is able to maximize inventory profitability, and that is keeping Spencer Gifts in the black (and orange).