The Business of Halloween

Contact: Megan Ferington or Frank Cirillo, 216.252.4938

Cleveland, Ohio (September 2007) – Halloween will be anything but scary for retailers this year. Consumers are expected to spend more than $5 billion on everything from costumes and candy to cards and decorations for the spooky holiday, according to the National Retail Federation.

This heavy spending is influenced greatly by the fact that more consumers are getting into the Halloween spirit. In fact, nearly 64 percent of consumers said that they plan to celebrate Halloween in some way, shape or form this year.

American Greetings trend experts have uncovered a few other facts about the popular holiday:

• Tricks and treats: The average consumer will spend more than $64 on the holiday, in a variety of ways. According to BigResearch, more than 73 percent of consumers will be handing out candy, 34 percent plan to sport a costume and more than 17 percent will be visiting a haunted house.

• Reaching out from above the grave: According to the Greeting Card Association, Halloween will be the top fall card-sending occasion this year. Total spending of nearly $50 million is estimated for Halloween card sales.

• Fun for all ages: Halloween isn’t just for the kids anymore. The top segment of celebrants is actually represented by the 85 percent of adults 18 – 24 who will be celebrating this year. In addition, more than 76 percent of those 25-34 and 71 percent of those 35 – 44, will be partaking in some form of Halloween fun as well.

• Whole lot of haunted houses: Home decorating is a particularly strong segment of consumer spending for Halloween. In fact, Halloween represents the second biggest decorating holiday of the year, after only Christmas. This year, more than 67 percent of consumers plan to purchase Halloween décor and nearly half (49 percent) plan to decorate their home or yard.

• What to wear: In addition to decorating their homes, consumers will, as usual, be decorating themselves this Halloween. The average consumer will spend more than $23 on a costume this year, according to an About.com survey. The most popular costumes for children this year include traditional favorites such as princesses, pirates and witches.

For adults, ExtremeHalloween.com reports that tried and true picks such as pirates and witches will be among the favorites, as will more topical, offbeat selections such as the Geico Cavemen.

The new collection of Halloween cards and accessories from American Greetings can be found at participating drug chains, grocery stores and super centers nationwide, as well as in American Greetings and Carlton Cards retail stores. Visit www.americangreetings.com/retailers for store locations.

About American Greetings Corporation
American Greetings Corporation (NYSE: AM) is one of the world’s largest manufacturers of social expressions products and greeting cards. Its product lines include gift wrap, party goods, stationery, calendars, ornaments and electronic greetings. Headquartered in Cleveland, Ohio, American Greetings generates annual net sales of approximately $1.7 billion. For more information on the company, visit http://corporate.americangreetings.com.