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Forbes
Forbes
5 Sep 2023


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Halloween decorations are bigger than houses, while bags of candy are shrinking. Meanwhile, the ... [+] entire Halloween season is getting longer.

Image courtesy of The Home Depot

Can a 12-foot skeleton be bested by a fun-sized candy bar? Thanks to shrinkflation, it may.

Yes, Home Depot’s giant lawn ornament, nicknamed Skelly, sold out in July for the fourth consecutive year that the retailer offered the early release. But this year, the epically successful Halloween decoration is facing off against epically stubborn inflation that is shrinking candy value.

True, those willing to shell out $299 for Skelly might not think twice about dropping $5 on a 10.5 ounce bag of mini Reese’s peanut butter cups. But for retailers, the point isn’t whether their customers must choose between outsized lawn ornaments or tiny-sized candy. It’s that size matters.

And the size of Halloween is on the bubble. According to a Halloween trends report by Power Reviews, 34% of consumers plan to skip buying any Halloween decorations this year, and an equal share said they will buy cheaper candy (sorry, kids). Nearly 90% of consumers said they’re willing to buy candy through a brand or vendor they’ve never tried.

If shoppers are switching retailers for their beloved Kit Kats and Reese’s (or skipping them, perish the thought), then it might be time to right-size Halloween.

Consumers will adapt only so much to stubbornly high prices, regardless of big “Yay for Halloween!” displays. In 2022, the price of groceries rose 11.4%, on top of a 3.5% gain in 2021, Bon Appétit has reported. In the 12 months that ended in June, prices rose an additional 4%.

Other than the CEOs of supermarket chains, most people’s paychecks did not see the same gains.

So, shoppers are making choices. Kit Kats or Dum Dums, grocery store or dollar store. Here’s how retailers can size down the issue.

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Home Depot’s giant lawn ornament, nicknamed Skelly, sold out in July for the fourth consecutive ... [+] year that the retailer offered the early release. But this year, the epically successful Halloween decoration is facing off against epically stubborn inflation that is shrinking candy value.

Image courtesy of The Home Depot

Retailers and brands might say “boo” to the idea of scaling Halloween back to less than three months, but perhaps they should consider the cost. How much do the added sales from decorations and candy corn offset the cost of fulfillment, promotions and displays? If piles of Halloween candy are lingering on Oct. 24, does it get marked down sooner?

And what about more crowded aisles? Customer perceptions matter.

If retailers want to scare more sales out of the Halloween season, they should seek more creative ways. Reward programs, apps and other tech provide opportunities to alert select customers to seasonal offers that are relevant, without burying everyone under the hype.

Even Home Depot knows when to put Skelly back in the box.