If you live close to a large city, you’ve probably seen all these Spirit Halloween stores popping up recently. It’s impossible to miss them with their bright orange signs. I find it impressive that a company can generate enough revenue during the Halloween season to have the resources to open all of these temporary locations. But what’s even more impressive is that, even when operating within such a short time frame, they place a heavy focus on the online experience.
Let’s see how this company operates and review some key parts of their online strategy. Spirit Halloween recently added some interesting shipping options and seems to perform well online. Halloween is certainly an interesting time of year for businesses, and I thought it would be insightful to examine one of these extremely seasonal businesses that succeed online.
About Spirit Halloween and Customers Shopping Trends
Few people know that Spirit Halloween actually started as a women’s clothing store in 1983. Its founder, Joseph Marver, realized the huge potential of Halloween, changed his store name to Spirit Halloween, and started selling masks, costumes, and other fun seasonal items. Today, the chain operates with a unique model, opening retail locations for only a short period around Halloween. Buyers start purchasing inventory as early as February, and the company begins looking for retail locations in May.
This setup is a win-win for the company and for landlords: Spirit Halloween can find short-term leases (albeit at a premium price), and landlords gain cash flow until they find a longer-term tenant. However, this model presents a paradox. When the economy is strong, customers have more purchasing power and are willing to spend more on Halloween supplies. But a strong economy also means that retail locations are harder to find, with fewer stores going out of business. Conversely, a weaker economy makes it easier to find retail locations, but consumers tend to spend less on discretionary items.
Finally, the company’s growth is remarkable: from 10 locations in San Francisco in 1993, Spirit Halloween now has 1,525 locations across the country, creating 50,000 seasonal jobs. The company has a strong retail presence but remains aware of new shopping trends. It is clear that customers increasingly favor online orders for their Halloween purchases, and Spirit Halloween has effectively responded to these new expectations. Let’s see how.
Spirit Halloween’s New Shipping Options
If I were interested in Halloween, I’d probably start planning at the very last minute and be tempted to browse Amazon with its fast delivery options. But this year, Spirit Halloween is stepping up their game. A major piece of news for this season is the development and implementation of two key partnerships in delivery.
The first partnership is with Roadie, a UPS company focused on last-mile delivery. “We have a ‘no zombie or witch left behind’ policy at Roadie,” said Marc Gorlin, Founder and CEO of Roadie. With its network of over 200,000 drivers, this partnership allows Spirit Halloween to easily scale for peak season.
The second partnership is with Uber Eats/Postmates. Spirit Halloween isn’t the first non-food retailer to partner with Uber Eats—Sally Beauty has done it as well. Nonetheless, it makes a lot of sense for a business with consumers often needing last-minute supplies. Beryl Sanders, director of U.S. grocery and retail partnerships at Uber, provided a relevant example: “As a working mom, I know how crucial that last-minute face paint or mask can be on the morning of the school parade or the hour before trick-or-treating starts, and I’m thrilled we’ll be able to meet that demand at Uber.” Another plus is that items will be priced the same as in-store.
These partnerships make a lot of sense for a seasonal business like Spirit Halloween. In theory, it brings significant value to the consumer and appears to be a solid alternative to Amazon. Let’s see in practice how the Spirit Halloween online experience measures up.
What is the Online Shopping Experience Like?
So, what’s it like to shop on Spirit Halloween’s website? I analyzed the last 1,000 Google reviews and identified the ones relevant to four categories: Selection, Pricing, Shipping/Delivery, and the overall online shopping experience.
Let’s start with selection. I’m not certain exactly how many items are listed on the website, but the selection appears massive. I didn’t find a single review complaining about a lack of items or inventory issues. The website is neatly organized, with several categories, and I found the navigation to be pleasant and easy.
On the product pages, most information is easily accessible. However, I noticed that listing quality was somewhat inconsistent. Some products, such as animatronics, had a lot of information, with multiple high-quality pictures and videos. On the other hand, some costumes only had one or two images, making it difficult to see how the costume would fit. Although customers may not be as picky as when buying high-end fashion items, improving visuals or even allowing user-generated content in the reviews could improve the shopping experience and help limit returns.
Next, pricing. Customers were mostly happy with prices; 81% of the reviews mentioning prices described them as fair. So, I wanted to see how Spirit Halloween’s prices compared to a major competitor: Amazon. I couldn’t look at every product across all Halloween categories, so we’ll have to rely on anecdotal data here. I searched for “witch costume for women” on Amazon and compared the top 40 relevant search results (excluding items like candy) with the top 40 listings on Spirit Halloween’s website.
On average, Amazon prices were $12.10 lower for the same items. Similar items on Spirit Halloween were about 35% more expensive. This seems like a large difference, but it’s important to note that we’re not comparing the exact same items. In fact, Spirit Halloween’s items appeared (in my opinion) to look better than those on Amazon. I believe Spirit Halloween aims for a higher standard of quality to target a different demographic, but I could be wrong: it’s possible that Amazon products are just as good, but the third-party sellers didn’t put much effort into their content. Either way, in terms of pricing: (1) prices may be higher on Spirit Halloween and (2) despite the potential price difference, customers are generally happy with prices.
Finally, while one out of five customers expressed dissatisfaction with shipping and delivery, we should consider that many incidents could be the carriers’ responsibility, not the brand’s. Also, as with any reviews, unhappy customers are often more likely to complain than satisfied ones. A major complaint was that some items arrived later than expected. The new partnerships Spirit Halloween formed this year may help with late deliveries, as customers can easily order items and receive them the same day, giving them enough time to find an alternative solution if needed.
Overall, over 90% of customers seem satisfied with their online shopping experience. As a textbook example of a seasonal business, Spirit Halloween has only a few weeks to generate most of its revenue. With customers favoring online options more each year and tough competition from Amazon and Temu, the company has no choice but to deliver a flawless online shopping experience—and they appear to be doing very well in that regard.
Conclusion
Spirit Halloween’s unique seasonal approach seems to be a success in a highly competitive environment, especially when it comes to delivering a solid online shopping experience. With strategic partnerships for fast, last-minute deliveries and a focus on offering a wide selection, Spirit Halloween has positioned itself as a reliable choice for Halloween enthusiasts. Although some items may be priced higher than on Amazon, customers seem satisfied with the company’s offerings. As the Halloween season attracts more online shoppers, Spirit Halloween’s customer-focused strategy stays relevant and successfully meets customer expectations.
https://civicscience.com/halloween-draws-reduced-spending-and-mixed-reactions-this-year/
https://www.sfgate.com/local/article/bay-area-store-spirit-halloween-chain-19821458.php
https://chainstoreage.com/these-five-retail-brands-account-13-spirit-halloween-locations
