Region's shops not scared of sales slip

Retailers hope for a Halloween treat

Jaclyn Trop / The Detroit News

Halloween is almost here, but Metro Detroit retailers say that when it comes to costume and candy sales, there's nothing to fear.

The holiday has always been big business, and sales across the country are expected to reach $4.75 billion this year, but the lingering recession has some retailers spooked. The National Retail Federation estimates the average shopper will spend about $10 less this Halloween than last year.

"The economy has caught up to Halloween this year," said Tracy Mullin, president and CEO of the National Retail Federation. "Since retailers know that Americans will be looking to celebrate on a budget, there's no doubt we will see creative costume and decorating ideas in every price point imaginable."

The retail organization predicts shoppers will spend an average of $56.31 on candy, costumes and decorations, down from $66.54 in 2008. The group's survey also found that fewer people plan on partaking in traditional activities, including carving pumpkins, attending parties, visiting a haunted house, handing out candy and decorating their home or yard.

But with Halloween falling on a Saturday, local retailers are more optimistic. Adults are more likely to throw and attend parties, which boosts last-minute sales of ghoulish accoutrement such as wigs, makeup and false fangs as well as groceries.

Meijer is "generally more bullish" than the federation's predictions, said Frank Guglielmi, a spokesman for the Grand Rapids-based discount retailer. Meijer is on track to sell more than 2 million pounds of candy this year, about the same as Halloween 2008.

Stable gas prices, federal stimulus money and stock market gains could spell stronger sales this year, than last autumn, when major banks and many Wall Street firms collapsed and uncertainty loomed over the automakers, said Jim Hallan, president of the Michigan Retailers Association.

"It's turned out to be one of the biggest holiday seasons of the year," Hallan said. "It's become an event."

Costume sales strong

So far, costume sales have been robust at Screamers Costumes in Clinton Township, said manager Renee Grady.

The store opened a second location in Lake Orion this year and is offering coupons for the first time to stay competitive with local costume retailers and party stores.

Among the more popular items are a Michael Jackson costume kit -- wig, glasses, glove, and mask -- for $29.99, and a single sequined glove priced at $9.99. Screamers doesn't carry child-size Jackson costumes, but "if we had one, we probably would have sold 100 of them already," Grady said. "All boys 9 to 13 want to be Michael Jackson."

Sales at Halloween USA, with about 250 stores nationwide and nearly 40 in Michigan, are on par with last year, spokesman Don Rose said.

Party decorations such as Styrofoam tombstones and fake cobwebs continue to sell well, while costumes modeled after summer blockbuster characters, including the Transformers, Wolverine from X-Men, G.I. Joe and Disney princesses, have been moving off the shelves quickly.

"One thing about Halloween is that people will generally go out and spend money on their kids," Rose said. "It's a once-in-a-year thing."

Young adults may cut back

Some experts predict that even typically big spenders -- young adults -- will cut back on Halloween this year.

According to the national federation's survey, the average 18- to 24-year-old will spend $68.56 on the holiday, compared to $86.59 last year and $81.91 in 2007.

"With part-time jobs more scarce and parents unable to help out financially, many young adults have been impacted substantially by the economy," said Phil Rist, executive vice president of strategic initiatives at BIGresearch, a Worthington, Ohio-based firm that conducts research for retailers.

That's a concern for Deadly Intentions haunted house in Warren, which opened Sept. 25 with a crowd 10 percent larger than last year. The following weekend's attendance fell by 10 percent.

"So we're not 100 percent sure of what the trend will be," said owner Howard Erlick. "Even if we're 1 percent down over last year, we're not happy."