Halloween a treat for chains - Merchandising Spotlight

Ghost, ghoul and witch novelty items will be flying off drug store shelves this Halloween season and driving the seasonal category this year.

"The Halloween category has grown 35 to 40 percent over the past five years," said Lon Resnick, merchandise manager for the New York-based Chain Drug Marketing Association. He estimated that stores have increased category space by 10 percent over the past few seasons.

Merchants regard Halloween as a high-flying seasonal, but it may be less flighty this time--caught in the downdraft of a chilled economy. For the first time since the mid-80s, Halloween sales are expected to be flat over the prior year's figures. Still, buyers say novelty items will mean good sales this season.

Anticipating solid results, buyer Rick Burns said the category has grown dramatically at Snyder Drug Stores in Minnesota. "Our departments are now 48 feet, 6 to 12 feet longer than a few years ago."

Parents spooked

Frequent cases of tamperings with Halloween candy have made parents leery about taking their kids trick or treating. Instead, parents are hosting house parties for their children and, in growing numbers, their friends.

As a result, Resnick said that party goods have picked up 20 to 25 percent. He expects no drop this year since Halloween falls on a Thursday, paving the way easily for Friday and Saturday parties.

Party goods include a whole new area of decorative novelty items. Kerr's buyer Bill Carpenter depends on American Greeting Cards for guaranteed party merchandise such as plates and napkins. But he's turning to importers, such as Topstone and Fun World, to provide the decorative items that will drive his business this year.

Items that bump in the night

The hit item of the year is the Sonic Spook or Quaking Ghost. Whatever the various importers are calling it, it's hot for Halloween. The item hangs from a string and makes a howling noise when motion is detected. Retailing between $7.99 and $9.99, the item is expected to be number one in the category at a number of chains.

Buyers are mixing a number of other items into their Halloween departments. An Arbor spokesperson said that pumpkin carving kits, retailing for under $1, and perrecorded audio tapes of eerie sounds are top sellers. Pumpkin party lights are moving quickly at Kerr Drugs.

The ubiquitous pumpkin trash/leaf bags will be back on drug store shelves and in yards across America this year. Retailing for 99 [cents] to $1.99, the bags have had strong sales for two years. Ghost motif trash bags have been added at some chains. Affiliated's Resnick says the newest addition to the category--Stuff a Spider--is a series of bags which expand into an 11 foot-spider. The item, imported by Sunhill Industries, will retail for $5.99.

New face for masks

The trend toward more house parties and less door-to-door haunting is affecting costume items as well. For parties, makeup is more comfortable than masks. And parents are happy when kids can breathe and see better in costume.

"People are making up rather than wearing masks," said an Arbor spokesperson.

No more candy nightmare

In candy, national manufacturers have been moving away from packaging with Halloween themes. Retailers are pleased since it allows them to bring merchandise in early, but lets them keep it in the stores longer.

"As more companies consolidate, packaging has been getting better," said a spokesperson for Arbor. "Customers are buying in advance of the holiday, then coming back to the store to stock up for Halloween."

At K&B, only 10 percent of the season's candy stock is in holiday packages. Said Fuchs: "People buy the candy early and give it to their kids in their lunch boxes. Then they run out and buy more for Halloween."

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