selling halloween 2016 industry report | 1€¦ · selling halloween 2016 industry report | 2...

selling halloween 2016 industry report | 1

REPORTED SALES, TRENDS AND

BUSINESS DRIVERS OF THE 2016

HALLOWEEN SEASON FOR RETAILERS

AND HAUNTERS

sponsored by


RETAILER insights

n the fourth annual State of the Industry Report, Selling Halloween takes a deep dive into the business drivers and trends that are impacting the Halloween industry as a whole. Year-over-year data

highlights business growth areas and identifies those areas in which business has decreased. The retailer survey, conducted from January through June of 2016, includes input from a cross-section of retailers, including costume, party, home décor, gift, and online stores. Results of a separate survey of haunted attraction operators, also conducted from January through June of this year, offer insight into top-of-mind issues and concerns affecting the haunt industry and highlight plans for growth going forward.

* NOTE CONCERNING CHARTS: Some percentages are greater than 100% due to multiple response selections permitted for certain questions.

2 | selling halloween 2016 industry report

costumes are still performing at halloween retailers’ cash registers. When asked to name the category that produced the greatest volume of revenues this past Halloween season as well as the category in which sales increases were highest, a respective 25% and 15% of respondents to the 2016 survey cited adult costumes. “Those who enjoy dressing up will spend” on costumes, “no matter what” the state of the economy, wrote one survey respondent.

Other strong categories for retailers responding to this year’s survey included home décor and accessories. A total of 32% of participants in the 2016 survey deemed indoor and outdoor home décor their biggest

revenue producer during Halloween 2015, and 25% said the biggest portion of their sales gains came from products in this category. Accessories got 32% of the vote for yielding the biggest sales gains for retailers and 25% of the vote for biggest revenue producer.

The strong performance of home décor is hardly surprising given that as one survey participant said, consumers are buying a multitude of home décor products not only to “trick out” their properties, but to outdo their neighbors. As for accessories, more than one survey respondent noted that while some consumers purchase these items in lieu of costumes, many others consider them important add-ons to costumes they are also purchasing or may have at home.

Consumers Still Treating Themselves To CostumesHome décor, Accessories to ‘Trick Out’ Looks Also Moving

REGISTER TODAY!halloweenpartyexpo.com

Experience the unpredictable, extraordinary, comprehensive

event that is the Halloween and Party Expo.

EXPECT THE

UNEXPECTED

SAVE THE DATE

RETAILER insights

FROZEN MELTS, SUPERHEROES DOMINATEThe Disney film phenomena known as Frozen dominated the 2014 Halloween season and refused to melt in 2015, but consumers have, if you’ll pardon the pun, begun to “let it go.” Kids’ push to be Elsa, Anna, or Olaf the sassy snowman made Frozen-themed items the top pick for 49% of retailers responding to the 2015 survey, with Elsa alone garnering 44% of the vote. In the 2016 survey, however, superhero was retailers’ best-selling costume or “theme,” receiving 35% of the vote, followed by zombie (22%).

And now, for a new Halloween trick: In 2015, survey participants were presented with a number of set options and asked to predict which would drive business that year. Accessories topped the chart, with 42% of respondents stating that these add-ons would steal the sales show (up from 33% in 2014 and 24% in 2013). Makeup and home décor came in at second and third place, named as potential top business drivers by a respective 13% and 10% of respondents to last year’s survey, and

superheroes and unique items tied for fourth place, at 6% of the vote apiece.

This year, the responses were open-ended, and they varied considerably. The roster of possibilities cited by retailers participating in the 2016 survey encompassed everything from such staples as costume accessories and, as one respondent put it, “basics to customize costumes,” makeup, and realistic-looking home décor to more unusual items, like animatronics, Victoriana, jewelry, wigs, and high-end theatrical makeup.

MAKING THE PRICE RIGHTThe best-selling price point for adult costumes appears to be shifting both downward and upward, depending on the individual range. Specifically, of retailers participating in the 2016 survey, 30% deemed this price point to be $30 to $39, while fewer respondents (25%) said the same last year. The percentage of respondents that deemed the next-highest price level, $40 to $49, their stores’ adult costume price point sweet spot was higher in 2016 (36%) than in 2015 (26%). These


(figure 1)

WHICH PRODUCT CATEGORY PRODUCED THE BIGGEST SALES GAINS IN YOUR STORE(S) in 2015?

adult costumes 15%

kids’ costumes 3%

baby costumes 2%

pet costumes 2%

licensed costumes 2%

masks 5%

makeup 5%

accessories 32%

home décor (indoor/ outdoor) 25%

music (cds) 2%

party goods 2%

PERMANENT benefits for yourTEMPORARY Halloween Store.

Access to anever-expanding import program

Networking opportunities with the

industry's best retailers

A first-class and affordable marketing

program

Industry-leading vendor discounts

A full-time, knowledgeable

support staff

Internet tools that drive traffic to your store and

help streamline your operations

Party Club’s primary mission is to help independent party and Halloween retailers of all varieties—year round, pop-up, e-commerce— thrive in today’s challenging market. You know how to run your business; we can help make your business more competitive. We will give you the purchasing power and support to fight the big guys—and WIN!

Party Club of America is the party and Halloween industry’s largest,

fastest growing and most respected buying group for

independently-owned party and costume/Halloween stores.

1-800-324-7474www.PartyClubofAmerica.comJoinToday!

RETAILER insights

findings lend credence to the assertion that some adults are less “spooked” by the idea of spending more money on costumes than may have been the case last season.

In kids’ costumes, the past few years have seen increased parental demand—and a willingness to pay for more expensive, higher-quality kids’ costumes children can enjoy for year-round play.

The trend continues, as evidenced by the fact that 21% of respondents to this year’s survey claimed $30 to $39 as the best-selling price point for kids’ costumes offered in their stores. This is consistent with findings from the 2015 survey, in which 20% of respondents reported selling more kids’ costumes in the $30 to $39 range than children’s costumes in any other price range. Parents’ increased willingness to spend more money on slightly more expensive costumes for trick-or-treating time (and perhaps beyond) is also underscored by the fact that whereas 48% of respondents to last year’s survey (and 41% of respondents to the 2014 survey) called $20 to $29, rather than $30 to $39, their best-selling price point for

children’s costumes, fewer respondents (33%) did so in the 2016 survey.

ADDRESSING BUSINESS CHALLENGESLike retailers in other segments, Halloween retailers face challenges that are specific to their market, as well as challenges that also plague merchants in other segments. Competition falls into both categories, but while it is still a thorn in Halloween retailers’ side, there has been a subtle change in the type of competition that creates the biggest headaches for survey respondents. For example, the 2016 survey revealed that competing with mass merchants is the toughest problem faced by this year’s participants (63%), followed by remaining price competitive (58%). In the 2015 survey, the top two obstacles cited were competition from temporary stores (64%) and mass merchant competitors (63%).

FINANCIAL CONCERNS, OTHER FACTORS IMPACT SPENDINGRetailers’ in-store traffic and sales revenue picture indicates that while consumers are still spending money on


(figure 2)

WHAT WAS YOUR BEST-SELLING COSTUME OR ‘THEME’ IN 2015

DIsney princess 4%

Elsa (from Frozen) 13%

Superhero 35%

Witch 4%

ZOMBIE 22%

Day of the Dead 2%

Steampunk 9%

Vampire 2%

Princess(non-Disney) 7%

Video game character 2%

“The past few years have seen increased parental demand and

willingness to pay for more expensive, higher-quality children’s costumes.”

RETAILER insights

Halloween costumes, accessories, home décor, and other items, the economy—and most likely, competition from big-box retailers and pure-play online giants like Amazon, coupled with an ongoing trend toward re-using older Halloween gear—is impacting survey respondents’ bottom line. However, don’t say “boo” just yet: Survey results also show that sales revenue headaches are affecting fewer retailers than in previous years. A total of 10% of respondents to the 2016 survey admitted to having experienced decreases in sales revenue and 4% said revenues were flat, down considerably from the 30% that deemed sales revenue down or unchanged last year.

More sweet news: The number of respondents to this year’s survey that cited decreases in in-store traffic (29%) was not that much greater than the number of respondents to last year’s survey that said the same (23%).

A decreased willingness among consumers to earmark large sums of money for treating themselves to Halloween items and an inclination to curb holiday expenditures has, not surprisingly, incited retailers to make their own cost cuts. A majority

of retailers (81%) queried for the 2016 survey said they still feel as though cost-cutting changes are necessary due to the economy and buyers’ habits. However, while many are tamping down on investments in advertising and other marketing initiatives, retailers are clearly taking advantage of free platforms to generate business.

getting social media savvySocial media sites, such as Facebook, comprise a key example. Facebook remains retailers’ most popular social media vehicle, with 95% of retailer participants in this year’s survey now harnessing it to communicate with consumers. This is almost consistent with the results of last year’s survey, which indicated that Facebook use was a marketing strategy for 96% of retailers queried.

Retailers also reported that they are leveraging other free social media platforms to foster customer engagement and drive sales. A comparison of usage rates from the 2015 and 2016 surveys demonstrates that an increasing number of retailers see the value of boarding the social


25%of retailers deemed adult costumes the highest revenue producer for their stores in 2016.

(figure 3)

WHICH OF THE FOLLOWING AREAS OF YOUR STORE INCREASED IN 2015?

Square footage of store 3%

Online traffic to website/social media sites 17%

Number of SKUs carried 19%

Number of employees 2%

Number of trade shows attended 2%

In-store customer traffic 20%

In-store sales/promotions 10%

Number of visitors to store’s website 14%

Sales revenue 14%

RETAILER insights

media train. Pinterest and Twitter have made big gains, with a respective 41% and 43% of retailers polled for this year’s survey now utilizing the platforms versus 36% and 33% last year, respectively.

YouTube, the video uploading site, has gained ground in the retailer community as well, as has Google+, and both Bing and Tumblr are garnering retailers’ attention. Of respondents to this year’s survey, 31% utilize Google+, up from 25% last year. Some respondents to the 2016 survey also take advantage of social media

options that were not cited in the 2015 survey. These include LinkedIn (24%), Bing and Tumblr (6% each), and MySpace (2%).

Moreover, the use of social media platforms and websites seems to be working. A total of 17% of retailers participating in the 2016 survey said online traffic to their websites and social media sites is on an upward trajectory. Respondents don’t seem surprised by such results; several noted that consumers have come to expect to see retailers engaging with customers online and via social media


“Facebook remains retailers’ most popular social media vehicle, with 95% of retailer respondents to

this year’s survey now harnessing it to communicate with consumers.”

(figure 4)

WHAT IS YOUR GREATEST CHALLENGE AS A HALLOWEEN RETAILER?

Competing with temporary stores 55%

Competing with mass merchants 63%

Finding unique products 50%

Staying price competitive 58%

Finding and retaining good employees 18%

Promoting the store 18%

Shipping issues 17%

Overhead costs 18%

Competing with online merchants 50%

other 2%

RETAILER insights

and seek out these merchants in cyberspace.

RETAILER RESPONDENT PROFILEThe Selling Halloween Industry Report comprises the results of a random survey of Halloween retailers, of which the greatest number of respondents (40%) describe their business as year-round Halloween/costume stores. Some 12% are party stores, while 11% are online stores and 8% are gift/home décor/home accent stores. Other types of stores represented in the sample include discount/variety stores (3%), direct mail operations (3%), and department stores (2%). Roughly 13% of respondents to this year’s survey classified their stores as “other”—this includes, but is not limited to, year-round Christmas stores, year-round costume/magic stores, and specialty/metaphysical stores.

The majority of respondents (72%) listed themselves as president, owner, and/or general manager, with the remainder describing themselves as

buyer (18%), senior buyer (5%), vice president (3%), or merchandise manager (2%). Roughly 68% said their buying decisions impact one store; 23%, two to five stores; 3%, six to 10 stores; 2%, 11 to 25 stores; and 3%, 101 or more stores.

As for survey participants’ sales breakdown, the majority (48%) ring up less than $100K annually, down very slightly from the 50% of survey-takers who reported the same in the 2015 survey. The number of respondents whose annual sales volume ranges from $100K to $499K also remained relatively unchanged, at 27% in 2016 versus 27in 2015. The sales breakdown for the remaining respondents is as follows: participants with annual sales of $500K to $999K, 9% (versus 13% last year); participants with annual sales of $1 million to $2 million, 7% (versus 5% last year); participants with annual sales of $3 million to $6 million, 3% (versus 7% last year), and participants with sales of $7 million or more, 2 % (versus 3% last year).


(figure 6)

WHAT IS THE APPROXIMATE ANNUAL SALES VOLUME FOR HALLOWEEN MERCHANDISE IN YOUR STORE(S)?

(figure 5)

HOW DO YOU MERCHANDISE YOUR STORE (S)?

11%other

45%Themed vignettes

35%Racks of

costumes organized by

category

35%Shelves and racks by product

42%Less than $100K

2% $7 million or more

7%$3 to 6 million

7%$1 to 2 million

9%$500 to 999K

42%$100 to 499K


haunt insights

GIVING ‘SCARY’ A NEW MEANINGMore mayhem means bigger business

consumers clearly aren’t scared off by the idea of halloween haunts—and haunt operators are reaping the benefits. Some 24% of haunted attractions saw increased traffic during the 2014 to 2015 season, and 35% of businesses earmarked more square footage for their businesses in 2015 than they had in 2014. Just as significantly, 11% of haunt operators queried for the 2016 Selling Halloween Industry Report pegged their annual overall sales (tickets and, if applicable, merchandise) at $2 million or more; in 2015, no respondents fell into this category. During Halloween 2014 and Halloween 2013, the percentage of attractions bringing in more than $1 million in sales (again, tickets and merchandise) was far lower than the percentage of attractions bringing in more than $1 million in sales during Halloween 2015, at 4% and 2%, respectively.

Moreover, 16% of attractions generated $500K to $999K in total sales for the 2015 season, versus 8% in 2014. The number of attractions bringing in $100K to $499K was 28%, up from 21% in 2014, while the number of attractions ringing up less than $100K in sales totaled 33%, down from 53% last year. A small number of haunt operations (11%) accepted donations only in 2015.

Tickets sale remain the major source of revenue flowing into haunt operators’ coffers. Ticket prices continued to vary somewhat in 2015, with the largest number of haunt operators (44%) charging $20 to $29 for an adult ticket and 33% of haunt operators commanding $11 to $19 per adult ticket. Adult admission cost under $10 at 17% of operations covered in the survey, while just 6% of haunt operators surveyed stated that they charged admission prices

(figure 1)

WHAT IS YOUR TOTAL SALES VOLUME (INCLUDING MERCHANDISE, IF APPLICABLE)?

11%

11%

17%33%

28%

$2 million or more

OTHER

$500 to $999 K

$100 to $499 K

Less than $100K

(figure 2)

WHAT IS THE AVERAGE COST OF AN ADULT TICKET?

44%$20-$29

33%$11-$19

17%$10 or below

6%$30-39

$1 MILLION TO $1.9 MILLION

0%

haunt insights

of $30 to $39. A comparison of 2015 ticket prices with those charged in 2014 indicates that consumers may be willing to pay more for the price of admission to their favorite haunted attraction: While traffic was, as noted above, on the upswing at a good number of operations, ticket prices, too, are trending upward. For instance, in 2014, no survey respondents cited ticket prices in the $30 to $39 range, while by 2015, some had embraced that price point.

Moreover, haunt operators continue to find new streams of revenue by indulging visitors’

love of merchandise to remind them of their haunted attraction experience. The majority of haunts surveyed (72%) sell merchandise. This figure is consistent with results from the 2014 and 2013 seasons, when a respective 71% and 73% of operators reported having a retail component as part of their business. In a departure from a trend of the past few years, when T-shirts held top billing, novelty items were the top merchandise category for sale at haunts, with 86% of operators featuring such products. Last Halloween, T-shirts were hawked by 71% of respondents; promotional

items, by 57%; key chains, by 43%; makeup, by 29%; and mugs and CDs, by 21%. A total of 14% of respondents reported selling items in other categories, including props and food.

If figures from the survey are any indication, those haunt operators that do not tout novelty items in their merchandise assortment would do well to consider jumping on the bandwagon: The number of haunts selling novelty items was a far more moderate 53% during the 2013 to 2014 season. Makeup and key chains also showed considerable growth and, accordingly, may warrant addition to

NOVELTY ITEMS 86%


(figure 4)

WHAT SALES AND MARKETING TECHNIQUES AND TACTICS WILL YOU BE USING IN 2016?

mobile app 29%

Mobile tickets 41%

Online ordering 47%

Sponsorships 41%

Website redesign/upgrades 53%

Online couponing/ offers 53%

(figure 3)

WHAT MERCHANDISE DO YOU SELL?

T-SHIRTS 72%

CD’S 21%

MAKEUP 29%

MUGS 21%

PROMOTIONAL ITEMS 57%

OTHER 14%

KEY CHAINS 43%


haunt insights

haunters’ bag of merchandise tricks; a mere 18% and 14% of haunted attractions sold these items in 2014.

MORE THRILLS AND CHILLSWhen it comes to introducing new attractions or products for the upcoming season, as opposed to making cost cuts, haunt operators have a myriad of enhancements on tap designed to create mayhem and add more thrills and chills for visitors. The majority of these changes come in the form of fresh themes, rooms, and attractions, including 3D and attractions with an extra charge. “We are adding a new upsell experience, upgrading one of our haunted attractions with a new theme, and adding new products to our merchandise line,” reported one haunt operator. And while they may not be adding them right now, an impressive 36% of survey participants consider escape rooms a strong contributor to business. Cited as well were “other” enhancements, such as outdoor graveyards (29%), paintball (21%), “extreme” experiences (7%), and laser tag (7%).

Merchandise assortments, too, are

being augmented. One haunt operator is rolling out “petticoats and crinolines.” Another is expanding its merchandise assortment in general; its plans encompass offering higher-end novelty items as well as hand-made novelty options.

OPERATING CONCERNS, GROWTH AREASThere’s no denying that adults of all ages are celebrating Halloween. But this doesn’t mean consumers in every age bracket consider a trip to a haunted attraction or two a Halloween “must-do.” In fact, as has been true in recent years, haunted attractions are attracting a younger demographic. In the 2016 survey, the majority of operators (56%) queried reported that the average age of their strongest demographic is 25 to 35 years, while 33% of respondents pegged the average age of their strongest demographic at 18 to 24 years. This is an interesting contrast from last year’s survey, when 61% of haunt operators said the average age of their strongest demographic was 18 to 24 years and 21% put the age of their strongest demographic at 25 to 35 years.

(figure 5)

WHAT, IF ANY, SOCIAL NETWORKING SITES ARE YOU INVOLVED IN FOR YOUR

HAUNTED ATTRACTION(S)?

facebook 95%

twitter 50%

linkedin 6%

youtube 39%

pinterest 11%

myspace 11%

google+ 11%

bing 6%

35%of haunt operators participating in the survey added square footage to their attractions in 2015.


haunt insights

number of respondents (19%) said they hosted fewer attendees at their haunted attractions in 2015 than in 2014.

Other figures from the report also point to growth, as well as to more concerted efforts to attract new business. Notably, 35% of haunt operators participating in the survey added square footage to their attractions in 2015. Even more respondents (41%) hired additional employees. Similarly, for the third consecutive year, haunt operators upped their marketing efforts. The number of survey respondents that did so in 2015 (29%) was smaller than the number of survey respondents that boosted their marketing initiatives in 2014 and 2013 (53% and 59%, respectively), but the increase demonstrates that haunt operators continue to place an emphasis on bringing new visitors to their attractions.

Interestingly, however—at least, for this year—weather wasn’t perceived as having the biggest impact on haunt operations’ revenues. This designation went to marketing, with 39% of respondents to the survey stating that it had the most significant effect on

their “take” in 2015. However, weather was deemed the most significant influence on revenues for the previous 2014 season, by an even 50% of survey participants. Only 11% of participants in the survey stated that the economy had the most significant impact on their revenues this past season; in light of this, it is no revelation that 95% of haunt operators are not planning any cost-cutting measures in 2016. Of the 6% that intend to do so, plans encompass cutting overall haunt budgets.

As for haunt operators that intend to make improvements in their business, here’s a look at steps some said they plan to take:• New attractions, VIP experience, and corporate events

• Better effects and show quality• Opening another attraction this year

MOVING INTO MOBILE MARAUDINGWith consumers becoming ever more demanding when it comes to convenient options (read, online) for purchasing everything from groceries and apparel to movie and concert tickets, it’s no wonder that more haunt

Also in 2015, 11% of haunt operators said their strongest demographic is visitors aged 17 and under, compared to 15 percent last year.

Not surprisingly given adults’ heightened interest in getting into the Halloween scene and in the growing appeal of visits to haunted attractions as a “cool” way to do so, this year’s survey results show an increase in revenue and traffic for haunts. A total of 24% of operators queried said their attendee traffic was up last season. Fewer (16%) said visitor traffic had stayed the same, and none noted that it had decreased. The uptick in traffic mirrors the increase in revenues; 29% of operators saw the latter rise this past season. By contrast, a smaller

(figure 6)

WHAT BUSINESS-BUILDING INITIATIVES ARE YOU INTERESTED IN CONSIDERING OVER

THE NEXT TWO YEARS?

mobile app 40%

Mobile tickets 13%

Online ordering 20%

Website redesign 47%

Sponsorships 27%

Online couponing/ offers 20%

haunt insights

operators are starting to sell tickets on their websites in an effort to keep potential visitors from darkening competing attractions’ spooky doors. A healthy 61% of operators now make tickets available on their websites, up from 53% last year. Of those haunt operators (39%) that still sell tickets the traditional way alone, 67% chalked it up to a lack of resources for doing so, and 33% claimed they don’t see a need to make the move to online ticket sales.

Additionally, when asked to identify sales and marketing tactics they aim to leverage this coming season, survey participants claimed to have cut the biggest slice of the attention pie for online coupons/offers and website redesigns/upgrades, both at 53%. Other tactics slated for use include online ticket ordering (47%), sponsorships (41%), mobile ticketing (41%), and mobile apps (29%). With mobile devices like smartphones becoming almost a staple accessory for a majority of consumers, it’s hardly a surprise that haunt operators are ready to push the mobile envelope

further. In revealing business objectives for the next two years, 40% of haunt operators cited plans to add a mobile app and 13% said they will add mobile ticketing.

HAUNTED BY CHALLENGESDespite robust marketing plans and ongoing growth, haunt operators continue to grapple with a myriad of challenges. Some of these challenges have changed; for example, in 2014, 54% of respondents deemed marketing their greatest challenge, but in 2015, this number plummeted to 28%. Staying fresh topped this year’s list of challenges, with 72% of respondents deeming doing so their most significant obstacle. Other factors cited included overhead costs (39%), finding and retaining good employees (33%), remaining price-competitive (11%), insurance (11%), safety compliance (6%), and location (6%).

HAUNTER RESPONDENT PROFILEThe 2016 Selling Halloween Industry Report reflects survey findings from a random selection of haunt operators.

(figure 7)

WHAT ADD-ON ATTRACTION FOR HAUNTS DO YOU THINK HAS THE BIGGEST IMPACT ON BUSINESS?

laser tag 7%

paintball 21%

escape room 36%

extreme option 7%

other 29%

Of respondents, the majority (67%) described themselves as owner, while 17% said they hold the title of president or general manager. A total of 6% of respondents described themselves as a vice president of their haunt operation; 6%, as a manager; and 6%, as an actor or employee.

Half of survey respondents (50%) are responsible for making decisions for one haunt operation. One-third (33%) of respondents make decisions for two to five haunt operations; 11%, for six to 10 haunt operations; and 6%, for 11 or more haunt operations.


selling halloween 2016 industry report | 1€¦ · selling halloween 2016 industry report | 2...

Documents