Australia’s largest hardware retailer, Bunnings, is experiencing a notable surge in sales driven by its Halloween product range, despite broader weakness in the retail sector. The chain has reported strong demand for items such as inflatable Grim Reaper DJs, light-up trees, and plastic skeletons, with several products selling faster than expected ahead of this year’s Halloween celebrations.

This rise comes amid a contrast in consumer spending patterns, where shoppers are cutting back on general household goods, clothing, and discretionary items but continuing to allocate funds toward seasonal occasions and experiences. Major department stores Myer and David Jones have recently reported softening sales, and furniture retailer Nick Scali saw its shares drop 23 percent in one day after lowering its profit forecast due to declining foot traffic.

Bunnings spokeswoman noted the growing popularity of Halloween decorations, explaining that customers were purchasing everything from smaller lighting options to larger statement pieces. Many of the Halloween-themed products are priced below $50, making them accessible amid ongoing financial pressures from rising living costs and higher interest rates.

Research from the Australian Retail Council and Roy Morgan indicates that spending on Halloween items, including decorations, costumes, and treats, is expected to reach approximately A$510 million this month, marking a 2 percent increase compared to last year. Despite this, the overall number of participants planning to celebrate Halloween in Australia is projected to decline slightly, from 4.8 million last year to 4.4 million in 2026.

Behavioral economist Phil Slade explained that people tend to prioritize spending on children’s events such as Halloween and birthdays as a way to maintain normalcy and emotional well-being, even when facing economic difficulties. He said families often reduce spending on other areas, such as groceries or personal luxuries, to preserve these occasional celebrations. This year’s Halloween falling on a Saturday night is also expected to encourage more people to host or attend parties.

The Australian Retail Council’s chief industry engagement officer, Fleur Brown, noted that while Halloween has grown in popularity over recent years, the current economic environment, including rate rises by Australia’s central bank, is affecting consumer enthusiasm. The average household is expected to spend around A$117 on Halloween-related items, a 25 percent increase over the past two years.

Retailers beyond hardware stores are also capitalizing on Halloween spending. Supermarket chains Coles and Woolworths have introduced promotions such as half-price chocolates and bonus rewards points to attract customers. Coles reported that demand intensifies during the final days of October. Meanwhile, Kmart’s chief commercial officer, Callum Smith, said Halloween participation is growing among Australian families, with Woolworths observing a similar trend.

Finance expert Tony Catt of Catapult Wealth suggested that families are likely opting for more affordable treats and simpler decorations this year rather than forgoing Halloween celebrations altogether, highlighting the event’s role in providing joy and hope amid a challenging economic outlook.

In the United States, where Halloween is a major retail event, spending is expected to remain relatively flat this year and below inflation, reflecting similar financial pressures on households. This parallel suggests that while consumers are cautious, they continue to allocate resources toward maintaining communal and family traditions like Halloween.