Online Marketplaces and Pop-Up Shops Drive Record Halloween Spending in 2026
What's Happening?
Halloween spending in 2026 reached a record $13.5 billion, surpassing the previous year's record of $13.1 billion, according to the National Retail Federation. Consumers planned to spend an average of $115.14
per person, with costumes, decorations, and candy being the top categories. Despite expectations of higher prices due to tariffs, 79% of shoppers still planned to celebrate, opting for strategic shopping by hunting for deals, reusing items, and starting early. Discount stores remained the most popular shopping destination (39%), followed by specialty Halloween stores (32%), and online retailers (27%). Online marketplaces like Shein, Temu, TikTok Shop, and Amazon Haul were popular for low-cost costumes, while physical pop-up shops, exemplified by Spirit Halloween, provided experiential shopping and revitalized vacant storefronts. Online search was the top source for costume inspiration, and nearly half of consumers used AI tools for brainstorming and product research.
Why It's Important?
The record Halloween spending in 2026 highlights the evolving and dynamic nature of the U.S. retail market, showcasing how consumers leverage both digital and physical channels to maximize value and experience. The significant role of online marketplaces underscores their growing influence in providing affordable options, especially for single-use items like costumes, which benefits budget-conscious consumers. Concurrently, the success of pop-up shops demonstrates the enduring appeal of in-person retail experiences and their ability to adapt to seasonal demands, offering landlords temporary revenue and foot traffic. This dual success indicates a resilient consumer base willing to spend on holidays, even under price pressure, by employing strategic shopping behaviors. For policymakers, this trend suggests that regulations on online marketplaces or social commerce platforms could negatively impact consumers seeking affordable options, as argued by NetChoice, potentially hindering economic activity during key retail seasons.
What's Next?
The success of online marketplaces and pop-up shops in driving record Halloween spending suggests these retail trends will continue to grow and evolve. Consumers are likely to further integrate digital tools, including AI, into their shopping journeys for convenience and value. Retailers will likely continue to invest in both robust online platforms and flexible physical retail formats, such as pop-up stores, to meet diverse consumer needs and preferences. The model of temporary leases for pop-up shops, potentially extending across multiple holiday seasons, could become more prevalent, offering solutions for vacant commercial spaces. Policymakers may face ongoing discussions regarding the regulation of online marketplaces, balancing consumer protection with the desire to maintain competitive pricing and broad access to goods. The retail sector will likely continue to innovate in how it blends online and offline experiences to capture consumer spending during holiday seasons.
Beyond the Headlines
The record Halloween spending, fueled by diverse retail channels, reflects deeper shifts in consumer behavior and the broader retail ecosystem. The integration of AI tools into shopping habits signifies a growing reliance on technology for decision-making and product discovery, potentially reshaping how brands engage with consumers. The co-existence and synergy between online marketplaces and physical pop-up stores challenge traditional retail paradigms, demonstrating that both models can thrive by offering distinct value propositions—convenience and price online, experience and immediacy offline. This trend also highlights the adaptability of the retail sector in utilizing underutilized physical spaces, transforming them into temporary economic hubs. Ultimately, it points to a future where retail is increasingly fluid, personalized, and driven by consumer choice across a seamless omnichannel experience, demanding that businesses and policymakers alike adapt to these evolving dynamics to foster a healthy and competitive market.