Business
Spirit Halloween’s meme-worthy $2 billion business is successful thanks to scooping up short-term leases from bankrupt stores
The store that kinda just appears one night in your local mall like an apparition only has a few months to make a year’s worth of revenue. But thanks to its ~1,500 pop-up locations and 50,000 seasonal workers, Spirit Halloween remains the king of spooky spending.
The early aughts mall icon Spencer Gifts bought Spirit in 1999, and when current Spencer’s CEO Steven Silverstein started in 2003, the Halloween retailer had just 130 stores around the US. Moody’s Ratings recently estimated that Spencer’s and Spirit made about $1.9 billion in 2023—with with Spirit bringing in more than Spencer’s.
The key to success, which has long been immortalized in memes, has been Spirit’s commitment to scooping up short-term leases, especially after bankrupt big-box stores leave:
- The company has always chased nontraditional, monthslong leases, for which commercial landlords usually charge higher fees. But the growing number of big-box vacancies in the last decade has given Spirit more leverage.
- Most retailers sign leases at the beginning of the year, so by midsummer, when Spirit is hunting for empty buildings, there isn’t much competition for whatever’s available.
Looking ahead…the company will open 30 pop-up Christmas locations after all the scary innuendo costumes are packed up.—MM
This report was originally published by Morning Brew.
