Many people are cutting back, buying only accessories for costumes they already own. Compounding the problem, fewer homes are expected to be taking part in trick-or-treating this year.
"We're seeing a lot of people make their own costumes or use a costume from previous years," said Ellen Davis from the National Retail Federation.
"Candy doesn't necessarily benefit when Halloween is on a Saturday because it mean that fewer people are going to be home to hand out candy," she said.
The Altadena haunted house is free to the public, and the residents have gotten permission to shut down the street on Halloween to make it safe for kids who are trick-or-treating. The house is also wheelchair-accessible.