What's Happening?
Craft and discount stores are experiencing a surge in sales as consumers prepare for Halloween, despite economic uncertainties and anticipated price increases due to tariffs. According to the National Retail Federation, consumers are expected to spend $13.1 billion on Halloween in 2025, a 13% increase from the previous year. Discount stores remain the top destination for Halloween purchases, with 42% of consumers planning to shop there. Craft stores are also seeing increased foot traffic, with 14% of shoppers intending to buy from these retailers, up from 12% last year. This trend is driven by consumers seeking cost-effective ways to celebrate the holiday, including DIY projects and homemade costumes.
Why It's Important?
The increase in Halloween spending at craft and discount stores reflects a broader consumer trend towards budget-friendly shopping amid economic challenges. As consumers prioritize essentials, they are also looking for affordable ways to maintain holiday traditions and foster joy. This shift benefits retailers like Michaels and Home Depot, which have expanded their seasonal offerings to cater to this demand. The rise in DIY projects and homemade costumes not only supports craft retailers but also encourages creativity and personalization among consumers. This trend may have long-term implications for the retail industry, as more consumers turn to cost-effective and personalized solutions.
What's Next?
As Halloween approaches, retailers are likely to continue capitalizing on the demand for affordable holiday products. Craft and discount stores may expand their seasonal offerings and promotions to attract more customers. Additionally, the success of these retailers during Halloween could influence their strategies for other holidays, potentially leading to increased focus on DIY and budget-friendly products. The ongoing economic uncertainty may also prompt consumers to seek out more cost-effective shopping options, further benefiting discount and craft retailers.
