Economy
19 September 2022
Americans are ready to Halloween like it's 2019
With Halloween participation returning to pre-pandemic levels, NRF forecasts record consumer spending.

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Photo by Nick Fewings on Unsplash
With Halloween participation returning to pre-pandemic levels, NRF forecasts record consumer spending.
America is ready to get spooky again.
The news: Halloween participation is set to return to pre-pandemic levels, lighting the way to record spending, according to a new forecast from Prosper Insights & Analytics.
Key findings: Prosper surveyed 8,283 consumers from September 1-6. It found the following:
Participation breakdown: Consumers plan to participate in Halloween in the following ways:
Halloween spending is getting a boost from increased participation, says NRF. (Courtesy photo)
Key quote: “Halloween is an exciting time for many families, and that enthusiasm is reflected in the number of Americans who plan to celebrate the holiday this year,” NRF President and CEO Matthew Shay said, in a statement. “As consumers continue to return to pre-pandemic behaviors, retailers are prepared to meet that demand and help make this holiday a fun and memorable one.”
Dressing the part: Ted Lasso mustaches and sexy vampire getups are big business. Halloween costumes account for the biggest chunk of the Halloween consumer brew. This year, costume spending is expected to reach $2.9 billion, which is the highest level since 2017. Pet spending, in turn, is forecast to reach $710 million, which would also be above 2022's record.
Social costuming: When it comes to inspiration, online searches are the largest source of costume ideas, with 36% of consumers saying they turn to social media. Meanwhile, one-quarter said they will look in stores, and 19% said they will turn to friends and family.
“Social media is playing an increasingly important role in consumer behavior, and Halloween is no different,” Prosper Insights Executive Vice President of Strategy Phil Rist said. “Younger consumers, particularly those under the age of 25, will look to platforms like Instagram and TikTok for costume inspiration this year.”
Like the end-of-year holidays, Halloween season starts early. Nearly half of consumers, (47%), start shopping in September or earlier.
Where they shop: When it comes to the channel for purchases, 40% of consumers plan to purchase from discount stores, 36% will go to a costume shop and 31% will shop online. Meanwhile, 70% of adults already know what their costume will be this year.
Top costumes: Each demographic, including pets, has its own set of favorite costumes. The most popular adult costume is a witch, while for children it is Spiderman. Pets are most likely to be turned into a pumpkin.
Below is a look at the top costumes in each category:
Top Halloween costumes. (Source: National Retail Federation)
Ask Instacart answers prompts with personalized recommendations.
A pair of recent launches from Instacart highlight how the grocery ecommerce company is integrating two of the key emerging areas of technology into its offerings: Generative AI and marketplaces.
Let’s take a look:
Instacart is seeking to harness generative AI to create a more personalized shopping experience.
A new tool called Ask Instacart that is launching this week is designed to allow customers to type in questions about specific recipes or general recommendations for an occasion. Embedded in the search bar, Ask Instacart also provides personalized questions to be asked by customers. In addition to specific items, it provides information about food preparation, product attributes and dietary considerations.
For those eying how generative AI will play a role in the shopping experience, Ask Instacart shows how search can be transformed into a place for discovery. Instacart is aiming to provide answers to the more open-ended questions that people would naturally ask, not just simply provide info in response to a question that has one answer. It shared the following sample prompts:
The tool is also showing the way for generative AI to integrate with retail media. Ask Instacart is designed to integrate with a brand's sponsored products campaign, so that the answers to questions that match consumer needs can also provide a way for brands to stand out.
To create the tool, Instacart combined the language understanding of ChatGPT with its own AI models. It added in catalog data from 80,000 retail partner locations around the country, which together have more than one billion shoppable items.
Beyond mission: Ecommerce marketplaces have honed a shopping experience where it’s easy to find what you’re looking for. But if shoppers want to happen upon something they didn’t know they needed, social media or the store is still the best place to visit. Instacart is showing how generative AI can make discovery a marketplace function. It also signals that advertising will come to generative AI by way of retail media. Going forward, the growth of discovery could make retail media more valuable as a tool for advertising that raises brand awareness, not just lower-funnel conversions.
Instacart will power a new virtual convenience store for the grocery chain Aldi.
Aldi Express will feature 2,000 of the most-shopped Aldi items, ranging from prepared food and snacks to grocery staples.
Drawing on 2,100 Aldi locations around the country, items will be delivered as fast as 30 minutes, the companies said.
“Through ALDI Express, we’re making shopping more convenient so you can satisfy a craving or get a missing ingredient in minutes,” said Scott Patton, VP of National Buying at ALDI, in a statement. “Together with Instacart, we’ll continue to find ways to innovate and make the online grocery experience even more effortless and accessible.”
Aldi began offering delivery via Instacart in 2017, and has since expanded services to include pickup as well as alcohol delivery.
Aldi’s marketplace moment? While Aldi previously offered delivery, making the assortment available through a virtual store offers the opportunity to create a marketplace for its goods. With the virtual store, it will more closely resemble DoorDash and Uber Eats, which have been expanding their grocery assortment. With a marketplace, additional revenue opportunities could open up for the grocer, such as advertising through retail media.