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With all those considerations, Cavallo plans to maintain his level of spending for this spooky holiday.
"Despite the recession, people are still finding the funds to celebrate the holiday," Cavallo said. "They might cut back a little, but they plan to celebrate. Halloween is one of the biggest shopping seasons outside of the traditional holiday season."
Retailers are hoping for a solid Halloween sales, a weak one could signal a scary holiday shopping season ahead. Nonetheless, retail prognosticators are predicting a Halloween season still haunted by the effects of the recession.
The National Retail Federation (NRF) is expecting a decline of about 18 percent in Halloween retail sales, falling from $4.75 billion down from $5.77 billion in 2008. NRF estimates that individual spending will decline 15 percent to $56.31 from $66.54.
Cavallo points out that many retailers are marketing hard to get consumers to spend on Halloween items - costumes, candy and treats and decorations. You can find plenty of good deals, in particular, at the large discount stores, such as Wal-Mart and Target.
"There are plenty of good buys for shoppers," Cavallo said. "They are looking for ways to stretch their dollars. It is a heavy marketing season. Retailers want to entice people to spend...It seems that the economy has bottomed out and is recovering slowly."
Joanne Topalian, manager of Munson's Chocolates in Westport, has enjoyed a sweet Halloween shopping season. Munson's offers quality chocolate items and candy with Halloween themes, but it isn't the place moms typically shop for trick-or-treat items.
"The chocolate business has not been hurt by the economy," Topalian said. "Our business has been strong. We sold out of most of our Halloween theme candy. People are spending on chocolates, refusing to give up their little pleasures."
Topalian hopes that the robust Halloween sales are an accurate indicator of for the upcoming holiday shopping season.
A recent NFR survey has shown that about one in three (29.6 percent) consumers say the state of the U.S. economy will impact their Halloween spending plans. The majority of 88 percent plan to spend less overall. Consumers plan to cut back by buying less candy and using last year's decorations.
Others are planning to save by reusing old costumes or making one from odds and ends around the house. Halloween related activities, such as haunted houses and festivals are likely to take a hit in attendance, according to the NFR report.
Young adults (ages 18-24) historically among the biggest spenders for Halloween, plan to scale back significantly in 2009. According to the survey, the average 18-24 year-old will spend $68.56 on the holiday, compared to $86.59 last year.
Utopia, a skateboard, bike and costume shop based in Norwalk, is shedding the ghoulish masks, wigs and outfits after this year. Halloween related sales have slumped over the last three years, which made the store opt to expand into skateboards, bicycles and the paraphernalia that accompanies it.
Sue Czel, a Utopia employee for 13 years, said Halloween costume sales are booming because of a clearance sale. Adult costumes are 30 percent off, and kids costumes are 50 percent off.
In business since 1974, Utopia traditionally marketed its Halloween items with a customer rewards program and direct e-mail and newspaper advertising campaign, but found more demand for skateboards, bikes, T-shirts, body jewelry, hats, candles, incense and hair dye.
"Skateboards and bikes and the items that go with it are doing well," Czel said. "We're leaning more toward a family oriented store that appeals to all ages. The Halloween costume business just didn't bring the same demand."
Cavallo plans to look for sales when he shops for Halloween candy and items, but he intends to celebrate the holiday, maybe gearing back only a notch or two. He contends that Halloween has grown to be a big holiday in consumers' minds that will translate into spending to celebrate it.
He agrees the Halloween shopping season might be an indicator of what consumers will be willing to spend for the Christmas season.
"No doubt Halloween spending is big for retailers and marketers," Cavallo said. "Despite the recession, people find the funds to celebrate. It might just be a bit subdued. I have a lot of kids who will be trick-or-treating in my neighborhood. I plan to participate; I have to buy a lot of candy."
