There’s a new must-have fall item alongside the mum plants, rakes and yard waste bags in The Home Depot’s upcoming Labor Day commercial. For the first time, the retailer’s 12-foot yard skeleton, dubbed “Skelly,” will appear in a paid ad. And this year, Skelly is bringing his little dog, too.

The 15-second spot, created with BBDO, depicts a family getting its yard and front porch ready for autumn. Skelly, sporting new heart-shaped LCD light-up eyes, appears later in the video, accompanied by a 7-foot long, 5-foot tall puppy that the family’s young boy happily pets.

“Home Depot in the fall is known for some of the categories you would think of for Labor Day, but now we’re known for something more fun—Halloween,” said Dayton Demmery, director of events, workshops, multicultural and print at the Atlanta-based retail chain, noting that the popularity has happened organically without paid media previously. Yet with an upgraded skeleton and larger assortment, including the dog, Home Depot is adjusting its strategy to build more awareness, Demmery said. “Now is the time to really bring in Halloween and make it a part of our Labor Day message for customers because they expect it.”

Skelly and friends

In recent years, Halloween has become a major shopping event as consumers invest in large-scale décor such as Home Depot’s Skelly, which costs $299, and less expensive items like coffins and cobwebs. Skelly owes some of his popularity to his 2020 roots, emerging when consumers under pandemic lockdown were looking for outdoor activities.

While Home Depot put an early stake in the ground on so-called spooky season, its competitors have been creeping up with their own larger-than-life animatronics. Lowe’s has a scary 12-foot scarecrow for $399, currently labeled a “bestseller” on the retailer’s website. Costco has a 7-foot werewolf with LCD eyes for $339.99 as well as a $249.99 10-foot alien one reviewer called “super cool” at an “unbeatable” price. Traditional holiday retailers Party City and Spirt Halloween have also ramped up their Halloween assortments.

Home Depot’s new Labor Day ad will begin airing on national TV and digital channels on Aug. 22, the same day Halloween merchandise will start rolling out to its stores.

Items including Skelly and the new dog were available online earlier this summer but quickly sold out to eager fans. Both items will be restocked online as they become available in stores, Demmery confirmed. Home Depot is also rolling out new accessories for Skelly this year, including a kit of different LCD eyes options compatible with older skeleton models and a wig and purse set.

“You can retrofit an existing Skelly and get those new LCD eyes so everybody can participate and have the latest and greatest,” Demmery said.

Along with the expanded merchandise options and paid TV spot, Home Depot also posted about Halloween on social media earlier than ever this year—in March. The chain typically begins such organic marketing later in the year. The March post on X arrived ahead of Home Depot’s annual “Halfway to Halloween” product sale in April.

Macro-economic uncertainty

The focus on Halloween comes amid a cautious sales environment for Home Depot. Though the chain’s second-quarter earnings reported earlier this week topped analyst expectations, executives warned of slowing sales as consumers put off home repair projects.

“During the quarter, higher interest rates and greater macro-economic uncertainty pressured consumer demand more broadly, resulting in weaker spend across home improvement projects,” said Ted Decker, Home Depot CEO, in an Aug. 13 statement.

Home Depot predicted a full-year same-store sales decline of 3% to 4% after such sales fell 2.8% in the first quarter and 3.3% in the second quarter. Its second-quarter net sales rose 0.6%, to $43.2 billion, including $1.3 billion in sales from its recent purchase of SRS Distribution, a roofing and building products company. Second-quarter net income declined to $4.6 billion from $4.7 billion a year earlier.