Halloween and Bonfire Night set to be crackers for retail!
Halloween is an ancient Celtic festival traditionally believed to be the day on which the souls of those who had died that year progressed to the underworld. And although it is America that has led the way in developing it as a commercial opportunity in recent years the UK has fast been catching up. Halloween has gained massive popularity in the United Kingdom in recent years, turning into one of the country’s biggest cultural and commercial events.Statistics show that 2023 was a record year for consumer spending on both Halloween and Bonfire Night with Halloween spending across multiple retail sectors topping £1bn in 2023 and consumer spending on Bonfire Night increasing by almost 20%.
A recently published Mintel report claims that this was driven by a significant uptick in spending from younger generations, with 16-34 year-olds being the highest spending age group by far for both occasions. It seems that younger shoppers have developed an emotional connection with both events, as well as seeing them as a social occasion and the opportunity to have fun. So continued growth in the market will be dependent on leveraging the connection younger shoppers have with both events.
The Mintel report suggests that retailers should ‘lean into’ the emotional connection, with products that invoke past memories around popular activities such as trick or treating.
For smaller retail outlets and C-store operations, this may mean a great opportunity for increased sales and profitability from items of confectionery, food and fancy dress masks/clothing.
Halloween is a great theme for incremental sales, with the opportunity going way beyond cheap confectionery; parties and gifting also present excellent sales opportunities.
So whilst thoughtful product selection and merchandising is important it’s also sensible to be ready with adequate supplies of cash float; check you have your deliveries and collections with Loomis scheduled in good time.
A spokesperson for Asda, cited in a recently published report from the The Grocer has commented :
“Last year we saw incredible excitement for Halloween. Spend was up year on year, with customers turning to simple efforts like trick or treating, affordable décor, and sweet treats. We expect this Halloween to be bigger than ever, in line with the participation and engagement we’ve seen in seasonal events so far this year.”
Adam Zavalis, Vice President of Creative at Asda.
The Grocer report also attests that last year’s rampant inflation barely dented demand for what is becoming an increasingly popular event. Halloween volumes only dipped 0.5%, according to Kantar’s* read of the market, covering all grocery retail. Meanwhile, inflation helped drive up value by 12.2% to £549m.
*Kantar’s Worldpanel FMCG service monitors consumer behaviour across Great Britain. Its primary panel tracks take-home purchases of 30,000 demographically representative households. Data on consumption habits, nutrition and out of home sales is collected through subsidiary panels. Visit kantarworldpanel.com for details.
Key facts to take away from the Kantar report are as follows :
- Despite cost of living crisis, Halloween volumes only dipped 0.5% in 2023. Value rose 12.2% to £549m in the two weeks ending 29 October 2023, driven by a 12.8% increase in price.
- Across the four Halloween categories measured by Kantar, the only volume growth came from sugar confectionery and bakery, up 2.9% and 2.3% respectively. Chocolate confectionery volumes, meanwhile, were down 7.1%, while pumpkins took a 17.3% hit.
- Sugar and chocolate confectionery were also the categories to see the steepest price rises. Both were 19% more expensive than a year earlier.
- “Overall, Halloween categories in 2023 provided a substantial £83m uplift compared to average fortnightly sales,” says Kantar Strategic Insight Director Thomas Steel.
- Consumers mitigated the rising prices by trading down to own label. Brands dropped from 57.3% to 56.9% of total value sales. It was the third consecutive Halloween of decline for brands, which made up 61.1% of sales in 2021.
- As shoppers looked to save money, value retailers overtraded the most. However, supermarkets remained the top channel.
And whilst inevitably a high percentage of sales will be card/contactless there is sure to be more cash in circulation, both as a result of the purchase of lower value items and also the trend for cash budgeting we have seen over the recent years.
To explore ways to protect your cash takings and enhance retail operational efficiency, take a look a the new generation of Loomis Smart Safes
https://uk.loomis.com/solutions/safepoint
Source :
https://www.thegrocer.co.uk/consumer-trends/halloween-trends-2024-how-retailers-can-strike-sales-gold/693899.article