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By Dennis Limmer
Source: retailwire.com, October 2024

Spirit Halloween Superstores, a subsidiary of Spencer Gifts, has announced the debut of Spirit Christmas stores for the first time this holiday season. Concentrated primarily in the northeastern U.S., the initial 10 stores are set to open in the following cities:

  • Waterford, Connecticut
  • Dartmouth, Massachusetts
  • Brick Township, New Jersey
  • Marlton, New Jersey
  • Mays Landing, New Jersey
  • Woodbridge, New Jersey
  • Albany, New York
  • Bohemia, New York
  • Poughkeepsie, New York
  • Erie, Pennsylvania

To enhance the festive experience, a live Santa Claus will be available for photo opportunities, with shoppers able to get a free digital photo and reserve spots in advance to avoid long lines. Many of the planned locations are currently Spirit Halloween stores. For specific opening dates and hours, shoppers are encouraged to check the official Spirit Halloween website.

While holiday sales are lucrative — consumer spending increased 3.8% year-over-year to reach a record $964.4 billion in 2023, per the National Retail Federation — they remain an uncertain bet for the company, according to CNBC. Currently, Deloitte is expecting a 2.3% to 3.3% increase in total holiday sales for 2024 compared to 2023, but it forecasts a higher increase of 7% to 9% for e-commerce sales specifically, which the Spirit Christmas test stores might not support.

“Spirit Christmas is a new concept for us, and we’re hopeful it will resonate with our customers. Our goal is to create a festive retail experience that captures the spirit of the season, much like we do for Halloween.”

Spirit Halloween Spokesperson via CNBC

As reported by CNN, Spirit Christmas’s flagship store in Mays Landing, New Jersey, is set to open on Oct. 18, with additional locations following in early November.

Furthermore, WRRV radio added historical context to the news, explaining that in 1990, Spirit Halloween began experimenting with Christmas pop-up stores by extending leases into November and December. Founder Joseph Marver once stated, “The Christmas stores were just something I had to try since it wasn’t difficult to add another 2 months to our 3 month lease,” calling it a “no brainer” to extend into Christmas.

Though it was eventually discontinued, it seems this holiday concept was revisited in 2005 and 2006, after Spencer Gifts acquired the Spirit Halloween brand in 1999 and tested its own Christmas format. The question now is whether this time around will stick.

As previously discussed on RetailWire, Spirit Halloween is recognized as the most successful pop-up retail chain, anticipating a record year that included hiring 50,000 seasonal workers and opening 1,525 stores, up from 40,000 staff and 1,500 locations the previous year. CEO Steven Silverstein, who has led significant growth since acquiring the company in 1999, attributes success to extensive inventory, with over 4,500 costume options compared to typical retailers that may only carry 1,000 to 1,500.

Spirit’s unique business model focuses on inventory management, retaining 30%-40% of products for future sales instead of liquidating at season’s end. Their real estate strategy involves short-term leases from August to November, capitalizing on vacant retail spaces, while the increasing popularity of Halloween drives customer engagement. The shopping experience is enhanced by themed decor, animatronics, and passionate staff, creating an enthusiastic atmosphere that attracts customers.

As Spirit Halloween now steps into the Christmas season with its new Spirit Christmas concept, the company has the opportunity to leverage these proven strategies to establish a foothold in a different holiday market. However, it won’t have an inventory of costumes to lean on as it does for Halloween, so it remains to be seen whether it will be able to overcome the competition and find similar success as a seasonal destination beyond October.