Photo courtesy of Spirit Christmas
September 30, 2025
Is Spirit Christmas’ Growth Plan a Sure Bet?
Following a trial run which involved 10 pop-up locations in 2024, Spirit Christmas is tripling its store count this year to 30, according to a company press release, in hopes of capturing even more of the anticipated holiday spend set to come down as the year draws to a close.
With its test-run debut described as a success, Steven Silverstein, CEO of Spirit Christmas, made it clear that this seasonal transition was, in fact, a natural progression.
“At Spirit, we believe the magic of the season does not end with Halloween—it transforms,” Silverstein said.
“Back by popular demand and with even more locations, Spirit Christmas is an extension of our sensory-rich, interactive holiday experiences. From our one-of-a-kind Santa photo experience to an exclusive collection of festive merchandise, we’re thrilled to welcome guests back for another unforgettable season of magic and fun,” he added.
As NJ.com reported, 30 existing Spirit Halloween locations will be converted to Spirit Christmas stores following the conclusion of spooky season. Said locations will largely be located in the Northeast and Great Lakes regions.
Spirit Christmas Partners With Cherry Hill Programs for Pictures / Video With Santa
One time-honored tradition will be taking place at Spirit Christmas locations this season: meeting Santa Claus. Saint Nick will be on hand for photo sessions curated by Cherry Hill Programs, with packages listed at between $39.99 and $59.99. Each package is afforded a digital discount for those who book early, coming with free holiday cards as well as a free personalized video from Kris Kringle.
“We’re excited to partner with Spirit Christmas to create a joyful holiday experience for families. Our collaboration brings together the excitement of holiday shopping with the magic of meeting Santa, ensuring guests have unforgettable moments to treasure for years to come,” Chris Landtroop, VP of marketing and communications at Cherry Hill Programs, stated.
Further, Spirit Christmas is taking some apparent cues from its more established Spirit Halloween sibling, introducing an immersive store experience titled Peppermint Village. There, shoppers will find Christmas decor, gifts, apparel, and interactive displays “designed to spark joy and nostalgia,” as the retailer noted.
Retail Holiday Spend in 2025 Projected to Grow, But By How Much? And Can Spirit Christmas Cash In?
Retail spending projections for holiday 2025 are coming in from a variety of sources — Mastercard Economics Institute is calling for 3.6% YoY increase in total U.S. retail sales (excluding vehicles), while Deloitte is anticipating a more conservative annual increase ranging from 2.9% to 3.4%. Meanwhile, Bain & Company are suggesting growth of 4%, which is below-average but an uptick nonetheless.
With several billions in spend on the table — with the caveat that the aforementioned sources are anticipating e-commerce spending growth to far outpace brick-and-mortar spending growth this holiday season — can an emerging Spirit Christmas continue to snag enough market share to make its own expansion worthwhile (or even better, continue apace)?
Discussion Questions
Will Spirit Christmas eventually find as much dominance in the Christmas retail space as Spirit Halloween managed in its own niche? Why or why not?
Given the extreme amount of competition for holiday spend surrounding Christmas, how can Spirit Christmas firmly differentiate itself from other retailers?
How much effort should Spirit Christmas put into its e-commerce channel, versus its seeming focus on timely and immersive physical retail?
Poll
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Scott Benedict
Founder & CEO, Benedict Enterprises LLC
Allison McCabe
Director Retail Technology, enVista
Lisa Goller
B2B Content Strategist
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Last year, the format was in test mode. This year, it is building more of a presence, albeit still one much smaller and more regionally focused than Spirit Halloween. This suggests that while the concept works, the approach is still cautious and centered around learning. In my view, that’s correct as the dynamics are different from Halloween – decor is refreshed less often, and there is no significant focus on costumes. Spirit Christmas needs to find the niche and proposition that works, and then it can build more of a presence.
I view Spirit Christmas’s expansion as a bold but uphill climb—it may not reach the same niche dominance that Spirit Halloween commands, and here’s why. The Halloween specialty space was relatively under-served, lending Spirit Halloween a clear position as the “go-to” costume and spooky decor destination. Christmas, in contrast, is saturated—virtually every general merchandise, discount, and department store already devotes floor space to holiday goods. While Spirit can leverage its immersive, experiential DNA, it may struggle to displace entrenched retailers who bundle Christmas within their core offerings.
To carve out a differentiated space, Spirit Christmas must lean hard into what bricks and mortar can achieve that digital can’t—experiences, emotional nostalgia, spectacle. Imagine “Peppermint Villages,” interactive displays, curated Santa activations, limited-edition collectibles, and themed atmospherics that feel magical rather than commoditized. It also needs smart curation—not trying to be everything for Christmas, but choosing product verticals where an experience overlay adds value (ornaments, gift wrap, décor, specialty lights). If every big box is selling the same garland and lights, Spirit’s competitive edge must be the “Christmas theater” it brings to life.
Even so, I’d advocate a balanced channel approach. The physical stores are its calling card—its stage—but e-commerce must play a supporting role. Online should extend reach, enable pre-orders for the stores, facilitate ship-to-home overflow, and allow catalog browsing of seasonal exclusives. If the brand invests only in short-term pop-ups and neglects digital, it risks being too ephemeral. But if digital overtakes the experiential pull, Spirit loses its identity. The sweet spot is tight integration: use stores to inspire and convert, and let online serve demand waves that the physical footprint can’t fully satisfy.
Spirit Halloween came along at a time when the category for Halloween merchandising was still being defined. Back then, Halloween product was scattered across party stores, big-box retailers, and art supply shops. It still is but Spirit pulled it all together and, in many ways, defined the category. Their competition was playing catch-up.
Christmas? Not the case. It’s a well-established space with deeply entrenched retailers across every channel and assortment. From pop-up Christmas markets to specialty and mass retail, many players—some inspired by Halloween’s rise—have built formidable businesses. Spirit will need to take market share from them to succeed.
They do have two things going for them:
* Brand familiarity: Customers already associate Spirit with seasonal décor.
* Location continuity: If they can extend leases on Halloween pop-ups, shoppers know where to find them—and may be curious to return.
⠀But make no mistake—it’s a risk. Spirit’s agility with capital investments makes the gamble feasible, but this will be far more difficult than what they’ve accomplished in the Christmas category.
Every retailer essentially sells Christmas in the same way: aisles of decorated trees and baskets of ornaments surrounded by miscellaneous holiday decor. It may be the ultimate treasure hunt, but it’s not very exciting.
If Spirit Christmas can make holiday shopping a curated and immersive experience the stores will be a hit.
Holiday 2025 projections aren’t meaningful yardsticks for the potential for specialty formats such as Spirit Christmas. While averages work on grand scales, the details in the trenches can vary widely; Spirit Christmas is tooled for success after a 10-location pop-up test last year. Having solved the experiential and emotional connections with its Spirit Halloween nameplate, the company is poised to apply that DNA to Christmas. Similar to specialty retail formats, Spirit Christmas will need to establish its go-to credentials in a crowded space, which will require investment in digital marketing and e-commerce. With 10 locations last year and a tripling this year, the company is taking a cautious yet sensible approach, adopting a crawl, walk, run strategy.
Holiday spend in the Christmas season is not all about decor and fresh costumes. Am sure there is a business, but not to the same degree as Halloween
The photo package pricing is downright reasonable for a classic holiday experience that distinguishes Spirit Christmas from rivals, including dollar store chains.
I think this could have been successful several decades ago. I just don’t see people embracing that SPIRIT as they once did.
Ba humbug?
Two quotes from the article tell the tale. “…sensory-rich, interactive holiday experiences…” “…immersive store experience…” It’s a lot more complicated than, “Hey, we’ve got trees, and bulbs, and lights and stuff!” Storytelling. Getting the shoppers thinking to a new level that they would not get to on their own. Christmas decorating is probably on more of an auto-pilot than Halloween decorating, but that’s where the storytelling in the retail store comes in. Immersive store experience indeed.
Spirit might spark some curiosity with immersive experiences, but entrenched habits and fierce competition make long-term success unlikely unless it can completely reinvent the holiday retail experience. Most consumers refresh Christmas decor far less frequently, with shopping habits on “auto-pilot,” making it hard for new seasonal pop-ups to generate excitement or high transaction value. Economic projections for 2025 show only modest growth, with most gains favoring established retailers and e-commerce over short-term brick-and-mortar. Spirit Christmas faces a tough, uphill climb in the saturated holiday retail space.
Although there are many options for Christmas goods, none of them cover the entire gammut of needs for the entire season – cords to costumes. Spirit Christmas has a great opportunity to use innovation to upend the classic players, create a destination Christmas shopping experience, and reap the rewards of taking on the retailers who have been doing a half-job. Looking up my nearest location now!