Spirit Halloween operates for only about eight to 10 weeks each year, but the business runs year-round. Site selection, leasing, product development, logistics and seasonal hiring continue long after Halloween ends, according to Spencer Spirit Holdings CEO Steven Silverstein. Since Silverstein joined Spencer’s in 2003, Spirit’s store count has grown from roughly 130 to about 1,600 locations annually, making it one of North America’s largest specialty Halloween retailers.
Moody’s estimates that Spencer’s and Spirit generated combined revenue of about $1.9 billion in 2023. Spirit’s roughly two-month selling season produced more revenue than Spencer’s. This year, the company also completed its acquisition of Hot Topic, BoxLunch and Her Universe, taking its total store count above 3,000 and extending the business beyond seasonal merchandise into mall-based fashion, anime, gaming and broader pop-culture retail.
Short leases, long-term market planning
Spirit stores typically appear around September and close after Halloween. Silverstein says the locations may be temporary, but the company’s approach to those markets is not. Spirit generally searches for properties and signs leases in March and April, focusing on sites that are vacant but still offer customer traffic and visibility.
Rather than committing to conventional long-term retail rents, Spirit pays landlords a short-term fee, with leases usually covering eight to 10 weeks. For shopping centers, the arrangement creates revenue from space that might otherwise remain empty. For Spirit, it provides a fast route into established communities through existing commercial locations. Some stores return to the same buildings year after year. This fall, about 100 Spirit stores occupied former Party City locations.
Party City was once a major retailer of Halloween costumes and party supplies. It filed for bankruptcy for a second time in December 2024 and closed nearly 700 stores by the end of February 2025. The closures gave Spirit more locations to choose from, while consumers gained another physical retail option beyond Walmart, Target and Amazon for costumes and decorations.
Turning stores into Halloween destinations
Silverstein was influenced by the idea of “retail theater” while working at Bloomingdale’s under then-CEO Marvin Traub. After joining the Spencer’s business in 2003, he wanted customers to say they were “going to Spirit Halloween,” rather than simply visiting a Halloween store.
In 2005, Silverstein saw a Spirit store manager in Chicago build a pirate ship in the middle of the sales floor. The display included a skeleton, blue fabric, fans and flashing lights. The concept was later introduced at more locations through a store-experience program the company calls In Store Experience, or ISE.
Spirit introduces a new theme each year. Its 2026 theme is Camp Harbor Lake, a haunted summer camp. The company describes the approach as “five-senses retail”: products are integrated with lighting, sound, physical scenes and interactive installations rather than being placed only on standard shelves.
Spirit also relies less on conventional advertising, using store exteriors, online sharing and brand collaborations to build awareness. Past partnerships have included Dunkin’, Butterfinger and Chipotle. This year, Spirit worked with Goodyear on blimp-shaped costumes and arranged opening events where performers jumped from a blimp into a store parking lot.
The logistics of building 1,600 stores
The store footprint creates a demanding supply-chain operation. Spirit designs, develops and sources about 75% to 80% of its merchandise itself, with most manufacturing based in Asia. Products begin shipping in April, but they are not sent to stores all at once because locations generally lack sufficient storage space before opening.
Goods first move to four or five distribution centers across North America, where they are grouped by store. This year, Spirit also used 63 third-party logistics sites. Each site prepared and temporarily stored inventory for 25 to 30 stores before the merchandise was loaded onto trucks for final delivery.
Silverstein compares the process to “virtually building” 1,600 stores at the same time. A delay at any point can affect the company’s ability to open locations on schedule during a selling window that lasts only a few weeks.
More than 52,000 seasonal employees
Spirit hires more than 52,000 employees during its peak season, and many return the following year. Silverstein says some workers even plan their year around working at Spirit. The company describes its organizational structure as an inverted pyramid, placing frontline store employees at the top of the priority list.
A key role for the corporate teams is breaking down the complex process of building and running a store into steps that seasonal employees can carry out independently. For locations open for only several weeks, training speed, execution on the sales floor and on-time openings all affect how much revenue can be generated within the limited season.
Hot Topic adds a mall-based business
Spirit’s most significant move this year was the acquisition of Hot Topic, BoxLunch and Her Universe. Spencer Spirit agreed in August to buy the businesses from Sycamore Partners, and the transaction closed in early September. The purchase price was not disclosed. Sycamore Partners took Hot Topic private in 2013 for about $600 million.
Hot Topic opened its first store in Montclair, California, in 1989. For years, it was a familiar mall destination for band T-shirts, spiked necklaces and skinny jeans. The company’s 2007 annual report said licensed band T-shirts accounted for about 40% of revenue that year. Hot Topic later expanded into anime, gaming and fan merchandise, while BoxLunch launched in 2015 as a pop-culture gift retailer.
Hot Topic now has more than 615 stores, and BoxLunch has more than 280. Both businesses retain their California headquarters and continue to operate independently. Hot Topic CEO Steve Vranes remains in charge and reports to Silverstein.
Silverstein says Hot Topic is skilled at engaging specific properties and fan communities, while responding quickly to shifts in popular culture. For Spencer Spirit, the deal adds scale and gives the company a steadier mall-retail presence outside the Halloween season.