A Washington-based investment firm has acquired clothing and novelty retail firm Spencer Gifts for an undisclosed sum.
ACON Investments bought Egg Harbor Township, N.J.-based Spencer Gifts. The company operates Spencer’s stores and also owns Spirit Halloween, a temporary store in shopping malls that sells costumes seasonally.
“We’re buying a brand that’s been around for a long time, and done a great job the last four years turning things around and gaining productivity,” said ACON founding partner Ken Brotman. “We think there’s a lot more they can do.”
There are seven Spencer’s stores in the D.C. area.
In the past few years, Spencer’s has shifted from being known primarily as a gag gift and specialty store to focusing on accessories, CEO Steven Silverstein said. The store targets Generation Y customers, in the 18-24 year-old demographic.
“We’ve also began targeting male and female customers, when previously we were much more male-oriented,” Silverstein said.
The firm has also redone its store design, with higher ceilings and different merchandise presentation, Silverstein said. About 20 percent of the company’s 600 stores have been remodeled, and the company eventually is updating them all.
Spencer’s also is looking to possibly expand the Spirit Halloween concept for other holidays such as Christmas, Silverstein said.
“We’ve found a very strong niche that has been growing very rapidly,” Silverstein said. “In 2003, we had 180 Spirit stores; this year, we have more than 500.” The stores stay open for approximately two months a year.
ACON has some previous retail investment experience, Brotman said, but has not done mall-based or specialty stores before. The firm owns a restaurant chain in the Southwest called Peter Piper Pizza.
