Halloween to scare up big bucks for retailers

Some folks may think Halloween-loving consumers are out of their gourds, but they're expected to spend big this year on everything from pumpkin-themed party goods to witch hats for their cats.

Total spending on costumes, candy, decorations and greeting cards should hit $7.4 billion this year, up slightly more than 7% from last year, says the National Retail Federation.

Boosting those sales projections is the fact that Halloween falls on a Friday. That means young trick-or-treaters and adult partygoers can both celebrate late into the night without having to worry about getting up for school or work, says NRF spokeswoman Kathy Grannis.

A Friday "is the best possible time for Halloween to fall," says Richard Parrott, president of retailer Ricky's NYC, which sells a vast range of Halloween costumes and accessories.

Not only will folks celebrate late into Friday, he says, they're likely to mark the holiday earlier in the week, as well as on Saturday.

In the days leading up to Halloween, he expects customers to line up merely to gain entry into one of his shops to snap up items such as wigs, makeup and costumes that replicate Hollywood characters and play off pop-culture trends.

"It's just so popular of a holiday now," he says.

The NRF's Grannis notes that the average person is projected to spend $77.52 this year, up 60% from 2005.

On the decoration front, technological advances have helped fuel sales, Grannis says.

Consumers are drawn to gee-whiz items such as witch cauldrons that steam automatically and motion-sensor front porch props that jump out at kids as they approach a door to ask for candy, she says.

All told, decoration sales are slated to hit $2 billion this year, predicts the NRF.

Consumers are also splurging on the little extras that will make their outfits stand out, says Ricky's Parrott.

"The days of just coming in and buying a costume are over," he says. "It's all about the fine details — the wrist bracelets, the tattoos, the makeup, the hair, the styling."

This year, consumers will spend $1 billion on children's costumes and $1.4 billion on adult costumes, says the NRF.

Halloween fans are also getting more extravagant with the outfits they buy for Fifi and Fido, notes Grannis.

"People are going all out on pet costumes," she says.

In 2010, consumers said they would spent a total of $220 million on pet costumes. This year, that number is expected to hit $350 million, according to the NRF.

About 23 million people are expected to dress up their pets this year, with a pumpkin, hot dog and devil ranking as the three most popular outfits.

And here's a frightening fact that Grannis points out: The trend of risqué costumes is infiltrating the world of furry friends.

"Dare I say it — I've even heard of sexy pet costumes" such as a dress with a busty fake chest for a dog, she says. "Yes, it exists."