On a starless October night, a thick fog rolls in and blankets the moon, throwing the world below into total darkness. The streets are filled with ghouls and witches, vampires and superheroes, zombies and angels — all asking for a bit of candy to quell their desire for mischief. Legend has it that on this night, the veil between the physical and siritual realms is lifted, allowing the two worlds to collide.
Yes, it’s Halloween night, one of the most popular holidays across the country. Scary movies, elaborate costumes, heaps of candy, haunted houses, and jack-o-lanterns — Halloween delights both young and old with its spooky, supernatural overtones. But the supply chains that support Halloween are nothing if not temporal.
While it may not be as exciting as Michael Myers, the Halloween supply chain tells the story of a popular American tradition through the lenses of commerce and logistics. It’s a tale about economic comfort, intricate planning, small windows of opportunity, and sudden disappearance. This is the dimension beneath the holiday. As Rod Serling would say: It is an area which we call "The Supply Chain Zone.”
It’s All a Bunch of Hocus Pocus: Facts and Stats
According to a survey commissioned by the National Retail Federation (NRF), it’s projected that 73% of people celebrating Halloween will spend an all-time high of about $12.2 billion, which averages out to $108.24 per person. Most of this money, $4.1 billion to be exact, will be spent on costumes, with $3.9 billion on decorations, $3.6 billion on candy, and $500 million on greeting cards.
The survey also highlighted that among those celebrating Halloween this year:
- 68% will hand out candy
- 53% will decorate their home or yard
- 50% will dress up in a costume
- 46% will carve pumpkins
- 32% will throw or attend a Halloween party
"Consumers will be shopping early for festive décor and other related items and retailers are prepared with the inventory to help customers and their families take part in this popular and fun tradition.” said NRF President and CEO Matthew Shay.
Trick or Treat, Give Me Something Good to Eat
Easter may have chocolate bunnies and marshmallow chicks, and Valentine’s Day may have red hearts filled with sweets, but Halloween is the biggest candy holiday of them all.
In the weeks leading up to Halloween, consumers stock up on a wide variety of candies to give away to trick-or-treaters and consume themselves. To deal with this sudden uptick in demand, as well as the immediate November 1 contraction, manufacturers, distributors, and retailers alike must be on their toes.
There are only about six to eight weeks for everyone to make sure this candy is made and delivered correctly; even a slight miscalculation can result in a disastrous over- or undersupply of treats. The small window of opportunity combined with the high volume of demand can be tricky for some manufacturers like Hershey, which tries to plan out the supply chain at least 18 to 24 months ahead of time. Luckily, this year, the U.S. won’t be experiencing any major candy shortages.
However, by analyzing historical data as well as paying attention to certain variables, such as what day of the week the holiday will fall on, candy manufacturers can manage the sale of their treats while avoiding most tricks.
Another factor that can affect Halloween retail sales? The top U.S. candies. Reese’s, M&Ms, and Hot Tamales all top the nationwide list, according to CandyStore.com.
Every Night Is Halloween … Until November 1
The demand for Halloween costumes and decor is as intense as it is brief. Like candy manufacturers, retailers such as Party City must plan throughout the year in order to make the most of the short witching season.
Although Party City is open year-round and sells supplies for many other holidays, Halloween is their busiest, most lucrative time of the year; in order to maintain a competitive edge, the company even purchased a factory in Madagascar to allow for the manufacture of proprietary costumes. And in addition to permanent locations, Party City also opens Halloween City pop-ups, hiring approximately 25,000 seasonal workers to handle the influx of business.
Spirit Halloween, another pop-up Halloween superstore, is only open from August to November 1, yet spends the entire 12 months of the year preparing for the holiday, carrying out everything from market analysis to store location scouting to real estate negotiations.
Preparing for the Holidays Ahead
Year after year, Halloween is over just as quickly as it started. Like a haunted house at sunrise, the spirits and monsters disappear come November 1. However, in their absence come turkeys and jingle bells, signifying that the season of chaotic supply chains is only just beginning. But for now, relax, do the monster mash, and indulge in some candy. Happy Halloween!