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Dive Brief: - On average, consumers plan to spend $285 per household on Halloween this year, including $66 on experiences and $219 at retailers, a new Deloitte survey of 1,500 U.S. consumers found. A third (34%) of shoppers plan to spend more than they did last year. - Among the items shoppers plan to purchase for Halloween are costumes and accessories ($57 on average); decorations ($54); candy, food and beverages ($48); and dining and social outings ($32). - While two-thirds (67%) of respondents are buying their Halloween items in stores, a third plan to buy them online. Over half (55%) of respondents are headed to grocery stores, followed by big box stores (47%), discount and dollar stores (40%), and specialty Halloween stores (36%). Dive Insight: Though some consumers say they have no problem paying for their Halloween purchases, others are financing their purchases to stretch their budgets amid a shaky economy, Deloitte found. About seven in 10 shoppers said they can comfortably afford their Halloween expenditures. However, while nearly six in 10 (58%) said they expect the economy to remain stable or improve, 42% anticipate the economy worsening in the year ahead. Furthermore, one in five Halloween shoppers will use BNPL services or other financing to pay for their purchases, according to the survey. Many consumers have already begun shopping for Halloween. Over half (56%) of shoppers said they planned to make Halloween purchases by the end of September, and about a third (37%) of respondents planned to finish most of their shopping before Oct. 1, the survey found. In addition to Deloitte’s report, other research suggests that Halloween shoppers plan to spend more this holiday season and kick off their shopping errands early. Shoppers are predicted to spend $13.5 billion on Halloween this year, up from $13.1 billion the year prior, according to a report from the National Retail Federation. About half (49%) of shoppers surveyed by the NRF said they planned to shop for Halloween in September or beforehand. That uptick in consumer spending could continue into this year’s holiday season. Another report from Bain & Company projects that consumers will spend more than $1 trillion for the first time in November and December, up 4.5% from the year prior. As some consumers face financial strain, shoppers and retailers are concerned about the fragile state of the economy leading into the holiday season. Among lower-income consumers, fewer paid their bills on time in the past 12 months compared to last year, a survey by the University of Southern California and the Financial Health Network found. Over three in 10 consumers are facing “unmanageable levels of debt,” according to the survey results. Still, as some consumers began shopping in advance of the Halloween season, retailers are competing for early shoppers with deals and seasonal merchandise. Home Depot introduced its Halfway to Halloween collection in April and Target in August refreshed 70% of its Halloween assortment with new items.
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