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Yet the question remains: Why is Halloween the festival that is expanding now? We indulge in speculation: People (especially baby boomer parents) are more accepting of fantasy and play these days. There is no other nationwide occasion that allows people to indulge in a carnival atmosphere. The overworked, affluent folk who respond to Martha Stewart''s upscale homemaking advice are also receptive to the sprucing up of Halloween--and Halloween provides an unusual array of possibilities, from the creepy to the cuddly, for re-creating an idealized version of the holiday one remembers from childhood.

While price may be critical in attracting these holiday shoppers, it is often easier to capitalize on impulse buys and add-on purchases to build total sales. Target, for example, capitalized on the category last year with multiple aisles of costumes and accessories, makeup, candy, home decor and items that appealed both to kids and adults--all merchandised together in a cohesive manner. Retailers too often force the customer to walk the store looking for different Halloween products.Adult Halloween purchases have done much to grow this business. According to American Express, 28% of adults planned to dress up last year. NRF reports that more than half of U.S. workers are allowed to observe Halloween in the workplace, and 39% say they would consider wearing a costume to work.

THE ORANGE Halloween lights went up early this year. And in our neighborhood, there seemed to be a lot more of them--along with tiny ghost dolls hanging from trees, cobweb-like fabric stretched across porches, plastic spiders perched on roofs, and bloody plastic hands emerging from cardboard gravestones. For some reason, Halloween seems to have become a bigger deal than it used to be.It''s not just an impression. In 1999 Halloween became the second-biggest American holiday, based on the amount of money spent on decorations. According to Unity Marketing, Americans spent $659 million on Halloween stuff in 1999, pushing it ahead of Easter into the No. 2 spot. (Christmas is easily No. 1, with $1.9 billion spent on decorating.)

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