Halloween spending estimated to reach $130 million statewide

(Retail Association of Nevada) – If national Halloween spending survey results materialize in Nevada, retailers can expect purchases of costumes, candy, decorations and greeting cards to total nearly $130 million across the state.

The National Retail Federation’s 2010 Halloween Consumer Intentions and Actions survey found that Americans expect to spend an average of $66.28 to celebrate Halloween, up from $56.31 last year. This year’s spend per consumer is comparable to the $66.54 reported in 2008.

The survey noted that four in ten people, or 40.1 percent, will dress up in a costume – the highest percentage in the survey’s history – and an increase over 2009 when only 33.4 percent of those surveyed said they would dress up.

A new question on the survey – the results of which the NRF calls “astounding” – indicates that 11.5 percent of those surveyed said they would be dressing their pet in a costume.

Consistent with prior years, approximately 72 percent will hand out candy, and 50 percent will decorate their homes or yards with Halloween decorations. However, in a reflection of the tough economy, 30.1 percent of consumers noted the state of the U.S. economy will impact their Halloween plans, with some planning to make their own costumes or use last year’s decorations, among other cost-saving strategies.

Mary Lau, President of the Retail Association of Nevada, noted, “The latest taxable sales report for the state indicates spending was up in July, though a closer analysis suggests much of the increase was driven by visitor spending rather than improving conditions here at home. We are hopeful that some of that momentum will carry through the Halloween cycle and into the more significant November-December holiday spending season, serving to counter the state’s unprecedented economic and fiscal crisis.”

The NRF poll asked 9,291 U.S. consumers about their spending plans during the period August 31 through September 8, 2010, which are then extrapolated to the population of adults aged 18 and older.

As the National Bureau of Economic Research’s Business Cycle Dating Committee announced on September 20, 2010 that the latest recession reached a trough in 2009, it is possible that consumers will increase their spending slightly in light of the good news. However, in Nevada, where the unemployment rate continues to climb, most recently reaching 14.4 percent for August, reactions to the declaration that the worst recession since the Great Depression has ended will likely be more tempered as the local situation remains challenging.

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