As the year's spookiest night approaches, Napa businesses are reaping the rewards of the second most popular decorating holiday.

According to the National Retail Federation's (NRF), consumers are expected to spend $4.96 billion this Halloween, up significantly from just $3.29 billion a year ago.

Party Time paper and crafts stocks a seasonal Halloween store at their Jefferson Street location. Napans have embraced the "outlaw of the seas" fantasy for Halloween, said business co-owner Dotia Scriven, adding that 2006 is "the year of the pirate," she said.

"Every day we're selling pirate costumes, bandanas, earrings, swords and cutlasses. It's very exciting," said Scriven.

According to a NRF survey, pirate costumes were the second most popular choices for both adults and children. Princess costumes for children and witch costumes for adults ranked first.

Scriven also noted that adult costumes are becoming much more popular than in previous years.

"The sexy female costumes have been selling very well. Sexy pirate, sexy Snow White, sexy Dorothy, sexy '50s waitress ... they probably make the women feel feminine," said Scriven. "We have some beautiful long witch costumes and Vampira but they're not selling as well as the shorter ones."

Technology brings some new products to the masses. As fog machines have come down in price, sales are up, said Scriven. Smaller fog machines start between $22 and $29, she said.

"They're affordable and people are responding to them. We're selling quite a few. We also sell the fog juice," she noted.

Foggers even come in decorative shapes.

"They've got to come up with something new every year," said Scriven with a laugh.

Party Time's Scriven said her No. 1 selling items are cobwebs and spiders.

"They're inexpensive, and they're an easy way to put a mood out there. Everyone has to have spider web," she said.

With two temporary Halloween stores setting up shop in town, Scriven is doing what she can to draw business her way. She's running newspaper ads and hanging signs on her windows. She's also taped a large costume poster on an exterior wall facing the next door McDonald's drive through line. Drivers can peruse the costume selections while waiting for orders, said Scriven.

Other entrepreneurs are tapping into Napans' dress-up desires.

During most of the year Josh Townsend works as press secretary for southern California Assemblymember Fran Pavley. But for two months out of the year, coinciding neatly with legislative breaks, he runs a group of Halloween stores called Halloween Express. He's opened in Napa for the first time this year, in the former Vallerga's store at the River Park Shopping Center.

Just a few doors down, Sean Feeney has opened Feeney's Halloween Warehouse.

Feeney returns his store of tricks and treats to Napa after a one-year absence, but this spook master has been running his seasonal store in Napa for 12 years, he said. Feeney's been in the same location, a former Goodwill store, for four of the last five years.

Shoppers might be pleasantly surprised to find two Halloween stores in the Imola Avenue mall.

Townsend said he was also surprised, but hoped to benefit from being on Halloween Row.

"I see it as a mecca of Halloween stores. It's brought in people from all over," he said.

According to Townsend, Napa sales lead his mini-chain of three stores.

"People love it. There's so much space and product in the store. It's been a great location."

Townsend said he wasn't surprised to hear of the billion-dollar Halloween industry.

"I see the passion of the people when they are shopping and buying decorations. It used to be a kids' holiday, but it's exploded into a reason for adults to throw a party and get a little crazy. They're looking for an excuse to have fun. And I think Halloween is the number one excuse to have fun," he said.

Running a seasonal business isn't for slackers.

"It's a 20 hour-a-day job," said Townsend. "I get about 4 hours of sleep," a night.

"You are constantly inventorying, and filling-in for employees -- there's always something to do. It's like packing in a whole year's worth of work in two-and-a-half months," he said.

Come Nov. 1, Townsend says he'll host a 50 percent off sale and then quickly pack up his remaining inventory. "Then I usually try to go home and sleep."

According to the NRF, the Halloween spending increase is largely due to a surge in celebrating. According to the survey, nearly two-thirds of consumers will celebrate Halloween this year, a noticeable rise over the 52.5 percent that celebrated in 2005. In addition to a rise in celebrations, per-person spending is also increasing: the average consumer plans to spend $59.06 on Halloween, compared to $48.48 last year.

"Consumers see Halloween as a seasonal celebration to bridge the gap between the end of summer and the winter holidays," said Tracy Mullin, president and CEO of NRF. "Halloween offers a little something for everyone and, this year, people of all ages will be joining in the fun."

As the second-biggest decorating holiday of the year after Christmas, decorations continue to be a strong category as 67 percent of consumers plan to purchase Halloween decor and almost half plan to decorate their home or yard. Most people (95.7 percent) will scoop up plenty of candy, with the average consumer spending $18.72 in that category. Costumes are also expected to increase in popularity this year with consumers spending $21.57 to dress up as their favorite alter-ego.

Though growing, Halloween remains the sixth-largest spending holiday after: Winter Holidays ($457.4 billion estimated), Valentine's Day ($13.70 billion), Easter ($12.63 billion), Mother's Day ($13.80 billion), and Father's Day ($9.01 billion). Because it is not a gift-giving holiday, it ranks lower than other annual holidays in terms of spending.