Spirit Christmas: Why Pop-Up Retail Stores Are Successful

You’ve heard of Spirit Halloween, but have you heard about Spirit Christmas? How does the pop-up retail store model work?

Each fall, Spirit Halloween stores emerge from retail’s graveyard, transforming abandoned storefronts into spooky wonderlands and becoming the unlikely success story of America’s evolving retail landscape. This year, the company expanded and opened its first Spirit Christmas stores.

Here’s a look at the history of seasonal stores and Spirit Halloween’s business model.

History of Pop-Up Seasonal Retail Stores

Spirit Halloween is North America’s largest seasonal retailer of Halloween merchandise, known for its extensive selection of costumes, decorations, and props—and for transforming vacant retail spaces into Halloween-themed stores. 

Spirit Halloween’s expansion reached new heights in 2024, with plans to open a record 1,525 locations across the US and Canada and hire 50,000 seasonal employees. The company’s success reflects not only this increasing demand for Halloween merchandise but also Spirit Halloween’s adaptability in an evolving retail market as a pop-up retail store.

The Pop-Up Business Model 

Spirit Halloween has defied the struggles many brick-and-mortar retailers face, transforming from a simple costume shop into a cultural phenomenon. The company’s adaptable business model centers on the use of empty storefronts to house its seasonal pop-up stores, allowing for operational flexibility and cost-effectiveness in a volatile retail environment. 

Spirit Halloween starts purchasing costumes in January, basing selections on anticipated pop culture moments for the upcoming year. A team of in-house real estate experts scouts potential pop-up locations as early as November, helping the company maintain an edge in an increasingly competitive retail real estate market.

How They Stay Relevant

While Spirit Halloween’s core business revolves around the Halloween season, the company has developed several strategies to maintain customer engagement throughout the year:

• Experiential retail: The company creates interactive and engaging in-store experiences beyond simple shopping.
• Pop Culture Integration:
  • Meme embrace
  • Celebrity partnerships
  • Cinematic ventures. The company expanded its reach into entertainment with its 2022 release of “Spirit Halloween: The Movie.”
• Digital Engagement:
  • Social media. Spirit Halloween uses platforms like Instagram, Facebook, and X  to share teasers and product sneak peeks in the off-season months.
  • Affiliate marketing. The company runs a program that allows Halloween enthusiasts to earn money by promoting Spirit Halloween.
  • Interactive content. The brand runs regular online polls and contests.
  • Responsive customer service. Spirit Halloween offers year-round customer service through social media channels.

Spirit Christmas

Spirit Halloween’s success has long depended on the availability of vacant retail spaces for its seasonal stores. While the Covid-19 crisis led to a record 12,200 store closings in the US in 2020, freeing up significant retail space, Spirit Halloween now faces a more competitive real estate market.

Despite these market pressures, Spirit Halloween continues to explore new opportunities to expand. This year the company is launching 10 Spirit Christmas pop-up stores in the Northeast, trading its iconic skeleton mascot for an oversized winking Santa Claus. These locations feature photo opportunities with Santa and a life-sized gingerbread village where customers can mail letters to the North Pole. 

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