Halloween marks the beginning of a promising shopping season for retailers. Between costumes, candy and terrorizing décor, Americans are projected to spend nearly $11.3 billion on Halloween items this year. The projected growth indicates shoppers will likely spend more during the holidays as well. This is great news for an industry plagued by data breaches and declining revenue.
However, if the shopping experience feels more like a trick than a treat, brands risk losing customers during a critical shopping season.
The forecast looks clear and sunny for US consumer spending this year, but the luxury goods market is facing an uncertain climate. A new report from Bain & Co. reveals that the global luxury market is at its weakest since the recession, citing a slowdown in consumer spending and political upheaval in critical markets behind the slump. However, there is a silver lining. The same report predicts luxury brands will experience long-term growth, even if it is slow and steady. Fashion house Burberry is an excellent example of this. The retailer posted positive quarterly earnings alongside a profit warning to investors. Mulberry also issued a profit warning in the third quarter following a steady downturn in revenue.