The Inn at Penn on Friday, September 20th was a destination not for the fainthearted. Spirit Halloween’s “Carnevil” had taken over the ballroom: an animatronic-filled circus of spine-chilling fun. Also not for the fainthearted: competing in the whirlwind Baker Retailing Center Ideathon to win a share of $30,000 in prize money!
Welcome to All Hallows’ Eve—In September
Menacing jagged-tooth clowns, huge jumping spiders, leering pop-eyed marionettes, grisly skeletons, space aliens… Popping out of the dimness to a scary music track, these ghouls set the stage for the fourth annual Ideathon, sponsored this year by Spirit Halloween. In just 24 caffeine-fueled and sleep-deprived hours, student teams would need to wow the judges with innovative, fleshed-out business concepts for making Spirit Halloween even more of a retail success. And they would have only four minutes each to deliver their presentations.
The teams—which hailed from Wharton and other Penn schools, both undergraduate and graduate—were randomly assigned one of two challenges. Challenge #1 was to enhance the brand’s identity and establish it as a go-to destination not only for Halloween but for other holiday seasons and markets. Challenge #2 was to develop innovative, actionable recommendations to promote sustainability in Spirit Halloween’s retail operations. Company leadership and Wharton faculty served as judges.
Tom Robertson, the Baker Retailing Center’s academic director, emphasized to the students that the two business challenges involved real-world concerns. “These are issues that Spirit cares about… your input could be implemented by them going forward.”
The two first-place teams for the two challenges would each take away $10,000; the second-place teams, $5,000 each.
And so it began. The students were supplied with meals, a coffee bar, midnight snacks, mentoring support, and fun extras like tote-bag decorating, a photo booth, and 14-karat gold bracelets commemorating the event. And of course they could draw inspiration from the haunting Halloween figures that surrounded them—courtesy of the company whose slogan is “So Much Fun, It’s Scary!”
Behind the Scenes at a Unique Retailer
Most people enjoying a visit to a Spirit Halloween store don’t realize the Herculean effort it takes to be a retailer with no permanent location and a mere three- to four-month selling season. The Ideathon participants were treated to an inside look at Spirit Halloween’s operations from CEO Steven Silverstein and executive vice presidents Andrew Galasso and George Sotirin.
The executives painted a vivid picture of the complex strategy and logistics involved with setting up this year’s 1,530 stores in the U.S. and Canada: identifying markets, finding locations, and obtaining real estate; dealing with inventory, supply chain, transportation, and move-out and waste disposal. Sotirin commented, “We have to spend over $250 million before we can take in one dollar.” And it all must be done swiftly, without missing a beat, Galasso said. “There’s no room for delay. For Spirit, a day is a week, a week is a month, and a month is a season. If we miss a month, we miss the season.”
The company’s leadership also talked about how Spirit became the largest Halloween retailer on the planet today—in Silverstein’s words, how it went from “an unknown speck on the retail map to a powerhouse brand that has become synonymous with Halloween itself.” They traced its trajectory from 1983 when it merely displayed costumes in piles on cinderblocks, to today’s immersive store experience that keeps customers gleefully coming back. Spirit’s “guerilla marketing” is one factor in its success, they said. A particular triumph was last year’s gigantic 3-D Times Square billboard featuring Spirit’s mascot, who appeared to rip his way out of the screen and loom threateningly over the crowds. It went viral.
“And the Winners Are…”
Walking away with the $10,000 first prize for Challenge #1—the challenge to expand Spirit Halloween’s brand presence—was team Spooky Scary Scholars. Justin, a team member who was decked out in a jungle explorer’s costume, explained that their idea was targeting the pet market. He said the market was growing at a high CAGR but was fragmented, and that Spirit could position itself as a dominant player. “Spirit Halloween could not only enhance its reputation as the leading provider of all things Halloween, but also pivot to providing costumes for pets year-round for other holidays as well.”
Garnering second place for $5,000 was Team No Whine, Just Spirit. The group’s novel idea for enhancing the brand’s identity involved a Spirit Halloween mobile pop-up bus. One enterprising (!) team member wore an angel costume with an “Angel Investor” sash. Another team member commented that what she enjoyed most about the Ideathon was “how experiential it was in that we got to consult people who actually work at Spirit Halloween, and hear their thoughts regarding the feasibility and business perspective of our idea.”
What’s truly scary about Halloween? According to Team Haunted Hustlers, which won the $10,000 first prize in Challenge #2 (improving sustainability), the answer is “10 million plastic packages being wasted every year.” The team impressed the judges with a plan for sustainable, low-cost costume packaging made from rPET recycled plastic. Additionally, the package would convert easily into a costume accessory or trick-or-treat bag. Adding handles and snap closures would allow the bag to be used even after the holiday to tote around other items.
The intrepid Team Scooby Gang, taking away the $5,000 second prize, actually visited two local Spirit Halloween stores in Philadelphia during the Ideathon and talked with managers and customers. Their sustainability solution was durable cardboard costume packaging, and they distributed handmade samples to the judges. “Our cardboard packing solution is more sustainable and more profitable than the classic counterpart, while still allowing customers to see and interact with the costume in the store,” they said.
Spirit CEO Steven Silverstein conveyed to the students how impressed he was with all of their presentations. “You guys were incredible. I want to thank you for the amazing creativity, effort, and imagination that you brought to this event. We loved being here and I got great feedback.”
As for the students themselves, they enjoyed an extraordinary learning experience, working firsthand with a major retailer and engaging with real-world business priorities. Now, after their 24-hour marathon, they hopefully would go home to get some shuteye!