Troubled US retailers face expected drop in Halloween spending

NEW YORK – A predicted slide in Halloween consumption is the latest blow for heavily indebted retailers battling mounting overheads and the trend of consumers trading down to cheaper products.

- BLOOMBERG

US spending for the holiday will drop by 5 per cent to US$11.6 billion (S$15.1 billion) in 2024, according to the country's National Retail Federation. Sales of greeting cards and costumes are likely to see the greatest decline, a hit to merchants reliant on seasonal splurges in what has already been a tough year for the industry.

Households on the lower end of the income scale are broadly struggling as unemployment has edged higher in 2024 and underlying inflation has remained persistently high. Retailer Michaels said on a recent earnings call that households earning less than US$100,000 are reducing their spending, resulting in lower basket sizes.