Halloween spurring retail revenue growth
The popularity of Halloween, which has found a home in Germany as well, is set to add an estimated 540 million euros to retailers' coffers on October 31st. This is a 12.5% surge compared to the 480 million euros generated during the same spooky celebration last year, as per the German Retail Federation (HDE). HDE CEO Stefan Genth noted, "Halloween's popularity is on the rise." He further stated, "The pumpkin festival is turning into a significant sales booster for retailers."
The data is derived from a survey conducted by market research institute IFH Cologne on a sample of 1,200 consumers, commissioned by HDE. According to the survey, over 15% of Germans are planning on spending money specifically for Halloween this year. This is a 1.5% increase compared to last year's 13.5%. The must-haves on shopping lists include jewelry, accessories, makeup, decorations, and costumes. Additionally, consumers are stocking up for themed parties, the report suggests.
Retail could certainly use a pick-me-up: Sales from January to August remained stagnant in comparison to the previous year. Although German consumer sentiment has seen a slight improvement lately, the consumer confidence barometer for October stood at a negative 21.2 points, as per GfK and Nuremberg Institute for Market Decisions (NIM).
Traditionally, Halloween is celebrated on October 31st. Its origins can be traced back to Catholic Ireland, but it gained widespread popularity in the USA, particularly through Irish immigrants. Over the years, the festival has gained traction in Germany, with children and young adults often knocking on doors dressed as spooky characters to collect candy.
Other festive items, such as pumpkin lanterns and spooky decorations, are also seeing an increase in sales due to the growing popularity of Halloween. Moreover, retailers are reportedly expecting a significant increase in other revenue streams, like catering services and Halloween-themed food and beverages, as Germans continue to embrace the festivity.
