Partying adults make Halloween big business

Halloween may conjure up visions of shrieking kids in princess and skeleton costumes trick-or-treating door to door. But this popular holiday increasingly has morphed into a celebration by adults who buy a Dracula or sexy showgirl outfit and head to a party or club.

The shift has accelerated over the past five to 10 years, ushering in a transformation in the Halloween industry, according to retail industry analysts and executives.

More costume sales are going to adults, with some retailers saying the percentage of adult sales exceeds 50 percent. Nightclubs, restaurants and bars are throwing more Halloween parties and events.

Beer and booze companies are cashing in, too, unveiling Halloween ad campaigns and drinks, such as a Pumpkin Pie Martini from Blue Ice Vodka. And this year, with Halloween falling on a Saturday, some parties will last two days.

"Adults use Halloween as their escape holiday," said Shane Dabbs, owner of Santa’s Closet, a costume store in Rogersville, Ala. "It’s an excuse to have a good time."

Halloween generates up to $6 billion in retail sales, according to various estimates, helping to boost revenues just before the industry's crucial holiday season begins in earnest.

This year retailers will be watching nervously to see whether the long economic downturn bites into sales or whether shoppers decide instead to splurge on a weekend of frivolity.

Industry research firm IBISWorld predicts Halloween-related sales will climb 4.2 percent over last year to a record $6 billion as the budding economic recovery spurs consumers to “escape their recessionary woes.”

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The National Retail Federation is more downbeat, saying a wobbly economy “has caught up to Halloween.” Still, the group expects Americans to spend $4.75 billion on costumes, candy, decorations and cards, down about 18 percent from lkast year's projection of $5.77 billion. Consumers, on average, are projected to spend $56.31, down from $66.54 in 2008, according to a survey done for the industry group.

As adults increasingly have dug into their wallets for Halloween, retailers have responded by stocking more high-quality costumes and accessories, said Terrie Frankel, co-owner of Frankel’s Costume Co. in Houston. 

“In the past it was pretty junky,” said Frankel,  who estimates that some 80 percent of her costume rentals and sales go to adults.

Frankel bought her business in 1978.

“At that time, it was just beginning to become more of an adult holiday than a kids holiday,” said Frankel. "It has since mushroomed. The trend of adults buying costumes and accessories has accelerated in the past 10 years.”

The under-35 crowd is the key demographic for Halloween, with more than 80 percent of adults 18 to 34 surveyed saying they expect to spend money on costumes, whether for themselves, their children or their pets.

“Spending among young adults without children has increased dramatically over the last five years,” said NRF Vice President Ellen Davis. “Today’s young adults celebrated Halloween vigorously as children. They’re not ready to relinquish that fun.”

Costumes account for the biggest chunk of the spending — about $1.75 billion, according to the NRF, followed closely by candy and decorations. About $250 million is spent on Halloween greeting cards. Retailers report popular adult costumes this year include:

• Michael Jackson, following the pop superstar’s death this year
• Zombies, inspired by Michael Jackson’s hit “Thriller” as well as the movie “Zombieland”
• Vampires, spurred by the young adult “Twilight” books and HBO’s “True Blood” series
• Sexy Queen of Hearts, nurse and burlesque babe outfits

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