Spirit Halloween Expands into Christmas Retail with Spirit Christmas Stores

If Benjamin Franklin were alive today, he might add a third certainly to his familiar axiom: death, taxes, and the late-summer arrival of Spirit Halloween occupying vacant retail spaces across the United States. The speed with which the Halloween-centric chain claims empty storefronts each year is notable. Yet, as predictably as these stores appear, they vanish just as quickly, usually by mid-November.

This year marks a shift in Spirit Halloween’s strategy, as ten of its locations will transition from Halloween-themed to Christmas-themed stores. These “Spirit Christmas” outlets aim to transform from “witchy to winter wonderland,” according to Spirit Halloween representatives. “Spirit Christmas is a new concept for us, and we’re hopeful it will resonate with our customers,” a spokesperson told CNBC, expressing the goal of crafting a seasonal retail experience akin to their Halloween success.

Spirit Christmas stores will offer a variety of products, from stocking stuffers and holiday apparel to unique decor and one-of-a-kind gifts. They also promise festive activities such as photographs with Santa Claus and writing letters to the North Pole. Each store will feature inflatables and holiday decor, although not all offer the same experiences.

The expansion into the Christmas season is seen as a strategic move amid the challenges faced by brick-and-mortar stores in the digital shopping age. With online retail giants such as Amazon facilitating almost instant doorstep delivery, in-person shopping faces an uphill battle. This is especially pertinent during high-pressure periods like the holiday season when convenience often trumps tradition.

The move is also an attempt to tap into the lucrative holiday retail space. The National Retail Federation (NRF) estimates that holiday retail sales will rise by 3.8% year-over-year to $964.4 billion in 2023. However, the first ten Spirit Christmas locations, primarily in the Northeast, will serve as a pilot to gauge customer interest over the long winter holidays.

Deloitte forecasts anticipate holiday retail sales will continue to grow, predicting a 2.3% to 3.3% increase in 2024. Despite varied forecasts, the firm expects a significant rise in e-commerce sales, a sector that Spirit Christmas test stores currently do not support.

As the holiday season approaches, Spirit Halloween aims to leverage its successful pop-up model into Christmas retail, creating a festive environment that goes beyond replacing Halloween goods with holiday decorations. Whether or not this experiment proves successful remains to be seen, but it is clear that Spirit Christmas intends to make a marked presence in the holiday market.