Spirit Halloween: Why Are They Suddenly Everywhere During The Halloween Season?
It’s the most wonderful time of the year, Halloween! (Tis’) It’s the season where vacant storefronts temporarily transform into Spirit Halloween. It’s suddenly everywhere overnight. How many businesses can you say that pop-up leases are perfect for them? Spirit Halloween only pays for the space when they need it. 2023 is their 40th Anniversary. They plan to open more than 1,500 stores across the United States and Canada. They mastered capitalizing on abandoned spaces in local markets. By the way, how do they transform vacant spaces quickly? Let’s explore.
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The First Spirit Halloween
It started in 1983 in Castro Valley, California. Founder Joe Marver owned a women’s clothing store. He made the first Spirit Halloween an extension. October has traditionally been a slow month for retail. Marver saw a Halloween store inside a strip center that he operated. He saw lines coming out from that store. He then turned his boutique into a Halloween store. In 1999, he sold the company to Spencer Gifts, known for novelty and gag gifts. People who love Halloween love Spencer’s. More than 2,000 people attended the opening of their flagship store in New Jersey. The goal is to catch last-minute shoppers. That’s why their strategy is to be everywhere. If you somehow forgot about Halloween and need a last-minute costume, and you don’t have time to wait, not even a one-day delivery, go inside a Spirit Halloween.
You can shop online anytime, anywhere on their website or Amazon store. But none of their physical locations operate year-round. The temporary lease strategy helps them save money.
Convincing landlords was not easy in the start. Most landlords and property owners want a long-term lease, at least a 3–5 year contract. If you are a landlord, why would you want a 2-month short-term lease if someone would come in anytime who would sign a 5-year contract from you? But $1.00 is better than zero. Vacant commercial spaces that don’t get a tenant for several months are a problem for landlords. It costs money to maintain these properties. They are essentially burying money if there are no tenants. After the Great Recession, vacancies increased. Pop-ups were a good way to fill up vacant commercial spaces. Vacancies became a problem again right after the Pandemic. They also have kick out clauses. If the landlord finds another tenant looking to lease long-term after a certain date, they lose that space.
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Spirit Halloween vs. Commercial Real Estate
Finding real estate is the year-round part of the Spirit Halloween business. Once the season and stores close down (usually November 2), they are already talking to landlords for next year. It can’t be just any commercial space. Big spaces are the key for them. 50,000 square feet is the magic number. It’s the same space targetted by big box retailers. It’s usually in shopping centers and strip malls. Signing the lease is just the beginning. Setting up the store is a logistical challenge (or a nightmare). They always have to start from scratch every year. Spirit Halloween has to bring in all the products and the fixtures to build the store. They hire construction workers/contractors every year.
The $10 Billion Halloween Market
The United States spends $10 billion on Halloween annually. Each customer spends around $100 on costumes, decor, candy, cards, and more. 36% of customers plan to shop in a specialty store like Spirit Halloween. With 1,500 stores opening this year across the U.S. and Canada, they could be the most ubiquitous Halloween business. People associate positive feelings with Spirit Halloween. They are associated with the fall season. It’s back to school, you can have Pumpkin Spiced Latte again, and you see Spirit Halloween on your drive to work.
Competition
One of their biggest competitors is another pop-up store, Halloween City, a pop-up branch of Party City. Halloween City opened 149 pop-up stores in 2022.
Spirit Halloween is now part of the season. It has memes. They even have a movie in 2022, Spirit Halloween: The Movie. I haven’t seen it, but the trailers look like a Stranger Things rip-off.
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Spirit Halloween During The Pandemic
They opened all their planned 1,400 stores back in 2020 while competitors held back. In 2021, they had product delays higher shipping, and supply chain issues. It was a challenging year, but they were able to meet demands.
Spirit Halloween 2023
But in 2023, they have all the stocks they need. They are looking for revenge Halloween Shopping this year, they’ve already experienced a little bit of it in 2022.
For hardcore Halloween fans, Spirit Halloween wants to be the start of the Holiday. It’s an event. When Spirit Halloween opens (usually between early August and the end of September) It’s the beginning of the Holidays.
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