Consumers are feting Halloween in record numbers this year:
A hefty chunk of those sales will be generated at Walmart, the nation's biggest retailer.
Walmart spokesman John Forrest Ales spoke with Forbes about the retailer's strategy this season and what's ringing up registers at its 4,322 stores and on Walmart.com.
Where does Halloween rank as compared to the winter holidays in how big a sales period it is for Walmart?
While we won’t share sales figures, we can mention that each year, Halloween is definitely a popular time of year for our customers.
In the weeks leading up to Halloween, customers shopped earlier for costumes and party essentials than ever before. Last year, 20 percent of our bakery purchases for the whole year took place in the three days leading up to Halloween.
As Día de los Muertos gains popularity nationwide, industry experts anticipate increased interest in traditional décor, food and makeup associated with the holiday and the calavera face painting tradition.
How much has Halloween grown as a business opportunity?
Halloween and Dia de los Muertos on November 1 are growing in popularity and are important anchors to the harvest season. The Friday timing of Halloween this year is adding excitement for our customers. We're seeing more searches for 'Halloween costume' on Walmart.com earlier in the year, in fact about two weeks earlier than previous years. 'Halloween costume' is the No. 1 Halloween-related search term on Walmart.com a month before Halloween.
Beyond costumes, we’re anticipating a jump in all things Halloween, from baked goods to décor and candy. Our customers are buying more baked goods in the fall and winter than any other time of year. This year you’ll find added assortment in inflatable decorations and do-it-yourself baked goods.
The National Retail Federation shows spending on costumes, candy, decorations and party supplies are up more than 55 percent since 2005 [according to 2013 data].
How is Walmart uniquely capitalizing on the business this year? Product categories? Hot items? Marketing hooks?
With Halloween falling on a Friday for the first time since 2007, there are exciting opportunities for retailers as more age groups celebrate with more parties extending into the weekend. We are in a great position to serve customers with everything they need – from costumes and candy to seasonal décor, fresh baked goods and entertaining essentials.
Our merchants recognize trends and make sure we have what customers are looking for, from costumes that tie back to kids’ favorite movies to baked goods that incorporate this year’s hot flavor: Pumpkin spice. In fact, we’re adding more pumpkin flavors in the form of bread, rolls and cookies. We’re meeting this demand with pumpkin-themed displays and offerings in some stores from treats to scents. For example, we have 12 different varieties of pumpkin candles, and popular bakery items include pumpkin spice cheesecake and pumpkin cookies this season.
Pumpkins themselves also continue to top customers’ lists. Last year during the Halloween/fall timeframe, our customers bought 9.3 million pumpkins nationwide.
Another big trend is pet costumes, which are one of our fastest-growing costume categories. We’re already seeing a year-over-year increase in pet costumes as we get deeper into the season. Superhero outfits are among the top five picks for pets.
Costumes for kids are always a big focus for us, and this year we’ve expanded our collection even more to answer to trends. We know from back-to-school that Disney’s Frozen is hot. We’re offering exclusive costumes from hot licensed properties, such as Frozen, and we anticipate these picks to be top-sellers. More broadly, we anticipate kids will continue taking inspiration from superheroes and princesses.
Based on the trends we’re seeing, kids are looking for costumes that tie back to their favorite characters in TV shows and movies. We’re ready for this trend with a broad selection of Disney princess costumes, like Cinderella and Belle. On Walmart.com, superhero costumes are among the top picks for toddlers.
As we expected licensed costumes to be hot, with this knowledge, we refreshed our superhero costumes. For example, we have updated costumes for Teenage Mutant Ninja Turtles. Frozen and TMNT are the top two licensed properties on Walmart.com.
What's changed about how Walmart shoppers approach Halloween?
Our customers have told us and shown us that Halloween is an increasingly important for them as a fun part of the fall season. We’re also seeing our customers place more importance on costumes, and ways they can personalize them and take inspiration from their own lives. Sixteen percent of people will turn to pop culture for costume inspiration, according to 2014 data from the National Retail Federation. We’re also seeing growth in products like makeup, red lipstick and body suits as customers look to personalize their costumes.
Also on Forbes:
