Spirit Halloween bets on struggling real estate to fuel its growing business. Here's how

  • 📰 NBCLA
  • ⏱ Reading Time:
  • 57 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 59%

News News

Business Business Latest News,Business Business Headlines

Spirit Halloween must strategically execute its real estate operations to open its more than 1,500 pop-up stores each year.

. But the company's strategy to occupy more than 1,500 storefronts and hire around 50,000 seasonal workers across North America is no easy feat.

Spirit Halloween was acquired by longtime mall retailer Spencer's in 1999. By 2015, Spirit Halloween was bringing in about $400 million of revenue, according to Moody's Ratings. The firm estimates that the combined businesses, known as Spencer Spirit Holdings, brought in $1.87 billion in 2023. Moody's vice president of corporate finance Michael Tellis said Spirit Halloween accounts for a larger share of the company's revenue than Spencer's does.

Larry Link, president of New York real estate firm Level Group, said a New York City pop-up store typically pays a 20% to 30% premium to use a space for a short-term contract. Lease holdovers and property damage are two of the primary concerns for landlords renting to a temporary retailer, but he said Spirit Halloween is a special case.

In rural areas, it is substantially lower. CNBC looked at a Spirit Halloween lease proposal in Redding, California. That space typically leases for about $27,000 per month, according to the listing. The proposal indicates Spirit offering $30,000 for a four-and-a-half-month contract in April.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 319. in BUSÄ°NESS

Business Business Latest News, Business Business Headlines