Retailers hope kids go trick-or-treat in style

It seems that Halloween-related expenses are not spooking anyone out. Consumers this year are ready to spend, especially if it involves candy, costumes or ghoulish decorations.

According to the National Retail Federation, consumers are expected to spend $4.96 billion on Halloween products this year, up significantly from $3.29 billion a year ago. 

The increase is largely due to a surge in celebrations, according to the NRF survey released last month. Nearly two-thirds (63.8 percent) of consumers said they plan to participate in Halloween festivities this year, a noticeable rise over the 52.5 percent in 2005.

“It’s about more people spending more money,” said Kathy Grannis of the NRF.

Phil Rist of BIG Research, which conducted the NRF survey, added, “We all need a make-believe world to escape to in times of war and murky politics. What better way than to dress up and indulge in the whimsical side of life?”

One segment that people are spending more money on is costumes — particularly high-end costumes for children.

A survey of several online costume shops shows prices of $40 to $100 for children's costumes, well beyond the disposable $10 superhero and princess outfits typically available at discount stores.

The prices may be jaw-dropping for some parents, but clearly there is a demand.

Jalem Getz, who has been in the costume business for 11 years, has noticed a definite price spike in the costume category, especially for children’s dress-up clothes.

“We’ve definitely noticed an increase in demand for high-end children costumes in the last four years,” said Getz, president and CEO of BuySeasons Inc., an Internet-only retailer that offers a huge assortment of Halloween gear.

His company has gradually gravitated toward the high-end market.

High-end Halloween Click here to see some of the hottest costumes in the market buycostumes.com

“Clearly, price is not a barrier for our customers, because a large percentage of our sales comes from expensive costumes,” Getz said. “Less than 3 percent of our assortment is low-end."

Prices for the exclusive Tom Arma signature collection are north of $60, and some costumes have been sold out for the season. The Wall Street Journal calls Arma, who is also a photographer, the "Armani of the kiddy costume world" and most of his heirloom quality costumes are exclusive to buycostumes.com, a wholly owned subsidiary of BuySeasons Inc. The costumes based on Arma's photographs have animal themes and help raise awareness and funds for the the National Wildlife Federation.

“Many of the Arma costumes have been the No. 1 seller in the children’s costume category and we sell out pretty early in the season, Getz said.

"But we often find them being resold for a profit on eBay,” he added.

When it comes to spending, “Halloween is the new Christmas,” said Kristen Taylor, owner of Juvie, a clothing and gift store for "older kids” in Los Angeles. She recently hosted a costume workshop called “Beyond Fairies and Superheroes,” where Hollywood kids designed attire for trick-or-treating.

“This being Los Angeles, the kids at this workshop were interested less in trick-or-treating as ghosts and witches and more like evil celebrity-stalking paparazzi, 'Project Runway' contestants or their favorite 'Survivor' tribe members,” she said.

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