Close X
Friday, November 1, 2024
ADVT 
Life

Pandemic expected to hit Halloween sales

Darpan News Desk The Canadian Press, 23 Sep, 2020 09:56 PM
  • Pandemic expected to hit Halloween sales

A Halloween night that falls on both a Saturday and a full moon would normally be ideal for candy, costume and decoration sales – and werewolves.

But experts say rising COVID-19 cases could put the kibosh on spooky festivities, curbing demand for supplies that usually deliver healthy profit margins for retailers from grocers to specialty pop-up stores.

Halloween sales could also serve as an indicator for what retailers might expect this Christmas, the largest shopping season of the year, experts say.

“I expect sales will be soft all around because of the lack of gatherings,” said Farla Efros, president of HRC Retail Advisory. “It will be scaled back, especially with restrictions coming back in place.”

Premier Doug Ford said earlier this month that Halloween will be a challenge, noting that he would prefer parents not take their children trick-or-treating.

“It just makes me nervous, kids going door-to-door,” he said.

However, Efros noted that “it’s not just children and trick-or-treating” driving Halloween sales.

“Adults normally spend a considerable amount of money,” she said. “But large gatherings and office Halloween parties just won’t happen this year.”

Retail analyst Bruce Winder said families and friends might plan their own “bubble Halloween” like a backyard celebration or scary movie night.

While people will still buy some candy, decorations and costumes, he said it likely won’t be as profitable as usual for retailers and candy manufacturers.

“Halloween is a really important category for a lot of retailers,” said Winder, the author of the book Retail Before, During and After COVID-19. “Outside of Christmas, it's the next biggest spend.”

He said candy is often used as a “loss leader” to drive traffic to a store, while decorations and costumes are profit-driving items with high margins.

Yet because consumers will be less likely to shop around for the best prices this year, Winder said some retailers might back off on price promotions to help offset COVID-19 costs.

Still, he said given Halloween inventory was likely ordered months ago in many cases, retailers are likely to “go for it as much as they can.”

“I don’t think retailers are going to change that much in terms of how they merchandise,” Winder said. “They’ll use Halloween as a bit of a barometer for the temperature of Canadian spending during the pandemic ahead of Christmas.”

Meanwhile, candy manufacturers are also bracing for a muted Halloween season.

Hershey Canada Inc. senior marketing manager Ola Machnowski said the maker of Halloween classics like Twizzlers, Jolly Ranchers and Reese's Peanut Butter Cups is expecting to see an impact from the pandemic.

“We are expecting a decline in sales,” she said, noting that the company has done some consumer insight work that points to a scaled-back Halloween.

Still, Machnowski said many Canadians are looking forward to celebrating in different ways, and will likely seek out treats and other supplies.

Yet she noted that it’s hard to predict what will happen over the coming weeks in terms of public health guidelines and restrictions.

“We’re trying to find the delicate balance between planning and being nimble,” Machnowski said. “We’ve been talking about Halloween probably since Easter, so it's very important to us.”

Meanwhile, Michael Ross, chief financial officer of discount chain Dollarama Inc., expressed caution regarding how sales of Halloween goods will develop this year.

Typically, Halloween is “a strong weight'” anchoring third-quarter sales for Dollarama – a mainstay for seasonal products including Halloween candy, decorations and costumes.

“We believe it will have a negative impact, but to what extent we don't know,” he said earlier this month of the pandemic’s impact on Halloween sales.

MORE Life ARTICLES

Here Comes A Device To Regrow Hair On Bald Head

Here Comes A Device To Regrow Hair On Bald Head
There is good news for people experiencing hair loss as researchers have developed a wearable device that harnesses energy from the wearer and delivers gentle electric pulses to stimulate dormant hair follicles and regrow hair.

Here Comes A Device To Regrow Hair On Bald Head

Must-Haves for the Big Move

Whether they’re moving into residence or off-campus housing, getting organized and equipped with the essentials can make the transition go a lot smoother.

Must-Haves for the Big Move

The Importance of Time Management

The Importance of Time Management
Having a visual outline of my weekly and monthly schedules allowed me to maximize my time and efforts

The Importance of Time Management

Menstrual Cups For An Eco-friendly Period

In our pursuit for a better life, we continuously look for convenient solutions. But with changing times, what was once the 'best solution, does not always remain so.    

Menstrual Cups For An Eco-friendly Period

Make-up Tips To Suit Your Face Shape

Use of correct techniques and tools can help achieve the best results. Here's what goes well with the most common face shapes.

Make-up Tips To Suit Your Face Shape

Moms Happiness Index 2019: What Makes Indian Mothers Happy?

Moms Happiness Index 2019: What Makes Indian Mothers Happy?
Less than 50 per cent of Indian mothers are happy with their current state of life, reveal findings of Momspresso's "Moms Happiness Index 2019".

Moms Happiness Index 2019: What Makes Indian Mothers Happy?