Australian Halloween retail spend tipped to hit $510 million
It may be dark and scary, but Halloween is set to provide a bright spot in a challenging year for Australian stores.
Falling on October 31, the occasion marks the start of the retail “golden quarter”, rolling into Black Friday on November 27, Cyber Monday on November 30, and through to Christmas and Boxing Day.
Australians are tipped to spend $510 million on costumes, decorations and treats this year – a 2 per cent lift from last year – despite fewer people embracing the spooky spirit, according to research from the Australian Retail Council (ARC) in partnership with Roy Morgan.
Average spending among those celebrating is forecast to reach $117, up 13.6 per cent ($14) year-on-year.
Younger shoppers remain the driving force, with 18 to 34-year-olds representing the largest participating cohort, spending an average of $134 each to generate roughly $200 million.
“For retailers, Halloween remains an important spending occasion ahead of peak season,” says ARC chief industry engagement officer Fleur Brown.
“Those taking part plan to spend more on average, but fewer Australians are joining in this year.
“While the event has risen in popularity over recent years, cost-of-living pressures including RBA rate rises are clearly taking a bite out of this year’s celebrations.”
Gateway to holiday trade
Halloween is a way for retailers to test merchandising, visual displays and community events ahead of the all-important Christmas trade, says Dr Amanda Spry, senior lecturer in marketing at The University of Queensland.
“Halloween has become the gateway to Christmas creep, which is the strategic extension of the holiday retail season, meaning people are buying earlier and earlier in the year,” she says.
“It effectively warms up consumer sentiment and refreshes their attention and engagement after winter, extending the window for celebration and spending from late October right through December.”
Physical shops drive engagement
Spry notes that Halloween’s local growth has relied heavily on experiential marketing rather than entrenched tradition, pioneered by discount shops and supermarkets.
“Supermarkets and discount chains, for example The Reject Shop, normalised Halloween through visual merchandising and low-cost entry points – decorations, costumes and themed confectionery – which in turn creates familiarity with, and celebration, of the holiday,” she says.
“Retailers that treat it as a moment to express creativity and brand personality, rather than a purely sales push, tend to get stronger traction and social engagement.
“It’s an opportunity to tap into playful, community-oriented engagement that bridges family, youth and pop culture audiences. This is something online retail can’t easily replicate.”
Brown says she anticipates the retail sector to finish the year on a high, despite current headwinds.
“We expect a competitive finish to the year, with shoppers still willing to spend when they see value,” she says, citing Deloitte’s Retail Report 2026, which shows 77 per cent of retailers expect holiday sales to grow, down from 84 per cent last year.
“We are heading into peak season in an environment where consumer confidence is low. There are, however, reasons for cautious optimism on spending from feedback we are receiving.
“Profitability is the harder question. Retailers are managing rising costs while competing heavily for every sale, so a strong result at the checkout won’t necessarily translate into a stronger bottom line.”
