In October, Spirit Halloween, owned by Spencer Gifts and known as the go-to spot for Halloween decorations and costumes, confirmed to ABC News the launch of its new Spirit Christmas stores concept.

But there's one burning question: where does all this merchandise go when Halloween is officially over? "We sell 'em next year," Balles tells PEOPLE, pointing to the Barbie costumes hanging on the shelf, which were still popular this year. "We have distribution centers and partners that manage the whole process."

Low Overhead Costs: Spirit Halloween leases empty retail spaces—often abandoned big-box stores or other vacant locations—for a short period. By utilizing otherwise unused real estate, Spirit capitalizes on temporary, low-cost leases that are much cheaper than maintaining permanent storefronts.

Spencer Spirit Holdings operates two unique retail brands, Spencer's and Spirit Halloween. Spencer's started out as a mail-order company in 1947 and expanded into its current recognizable locations in malls in 1963, growing to a national chain by the mid-70s.