The Secret Genius of Spirit Halloween

Autumn is here and everyone is getting ready to dress up for Halloween — including that vacant retail space near your house. For a brief period, the shelves will be stocked with costumes and the facade will wear a sign reading “Spirit Halloween.”

These pop-up stores may only last for a couple of months, but Spirit Halloween has been a part of US culture for over 40 years. It debuted in the Bay Area in 1983, and in October 2023, it had over 1,500 stores. But by the time November ends, that number shrinks to zero.

Spirit Halloween has become a bit of a joke (the company even joined the fun), but there’s nothing funny about the brand’s business model. It actually makes a lot of sense, and last year, it earned the business $1.1 billion in revenue. And there’s no sign of stopping. As Americans get into the Halloween spirit, the store is poised to make massive profits by using its same old tricks.

The early lore

Spirit Halloween started with humble beginnings. In 1983 founder Joe Marver temporarily added Halloween items to his store, Spirit Women’s Discount Apparel. The next year, the first dedicated pop-up shop opened and the retailer opened more locations annually. In 1999, it had over 60.

That year, Marver also sold the brand to Spencer Gifts LLC — a retailer typically in…