Halloween Consumer Spending Surging In 2016
Break out your Donald Trump and Hillary Clinton costumes, this Halloween is expected to be a big year for consumer spending.
Halloween spending is expected reach $8.4 billion this year, up from $6.9 billion in 2015, a 22 percent increase, according to the National Retail Federation (NRF). Spending for October's favorite holiday is set to reach $10 billion by 2018.
Catalyst For The Jump
Consumers are becoming more comfortable with e-commerce purchases. "We are seeing virtual show rooming turn into actual transactions," said Andrew Scarbrough, co-founder of PriceWaiter, an e-commerce technology company focused on helping retailers increase sales.
The ease of use buying not only online but through mobile is a large reason for the increase in holiday spending. The proliferation of free shipping from online retailers as well as free returns is also allowing consumers to test their potential costumes in the comfort of their own home, avoid the holiday madness and easily return products. As is true throughout the e-commerce world, this is becoming increasingly attractive to buyers.
According to Scarbrough, social media users "are 6 times more likely to buy when influenced by a social media post." The need to participate in every holiday, but also share experiences with social circles continues to drive consumer motivation when it comes to purchases. This likely means that spending revolving nearly every holiday could be seeing an increase as social media's influence continues to grow and dictate the public experience.
While spending is primarily going to e-commerce giants, some smaller retailers are also seeing a benefit from the increase.
"We are seeing more growth in midsize retailers, some of the independent retailers are able to move quickly and innovate as they battle the giants, Wal-Mart Stores, Inc. (NYSE: WMT), Amazon.com, Inc. (NASDAQ: AMZN) and Target Corporation (NYSE: TGT)," added Scarbrough.
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