Gift and Souvenir Stores

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 14,900 gift and souvenir retailers in the US sell gifts, novelties, souvenirs, and related merchandise. Major product categories include souvenirs, novelty items, kitchenware and home furnishings, clothing and jewelry, seasonal decorations, greeting cards, and toys. Companies may specialize in a particular category, such as Christmas merchandise, Halloween costumes, or party supplies. The industry includes national and regional chains, franchises, and independent operators.

Seasonal Sales

Gift giving is seasonal, and peaks during gift-related holidays, such as Christmas, Valentine’s Day, and Mother’s Day.

Vulnerable To Economic Conditions

Gifts, souvenirs, and novelty items are discretionary purchases, and demand typically drops during economic downturns.

Industry size & Structure

The average gift and souvenir store operates out of a single location, employs 7-8 workers, and generates about $846,000 annually.

    • The gift and souvenir retail industry consists of about 14,900 companies that employ about 112,500 workers and generate about $12.6 billion annually.
    • The industry includes national and regional chains, franchises, and independent operators.
    • The industry is fragmented; the top 50 firms account for 47% of industry sales.
    • Large companies include Party City Holdings, Harry & David Holding, and Spencer Gifts. Most Hallmark stores are independently owned.
                            Industry Forecast
                            Gift and Souvenir Stores Industry Growth
                            Source: Vertical IQ and Inforum

                            Recent Developments

                            Dec 5, 2022 - Retail Sales Increased During Key Holiday Period
                            • Retail sales during the key Thanksgiving weekend period increased 10.9% year-over-year excluding auto, according to Mastercard SpendingPulse™, which measures in-store and online retail sales across all forms of payment and is not adjusted for inflation. In-store sales increased 10.5% while e-commerce increased 12.5% for the weekend running Thursday, November 24 through Sunday, November 27. Overall retail sales on Cyber Monday, the Monday following Thanksgiving, remained positive though they moderated slightly from the weekend in terms of year-over-year growth. Total Cyber Monday retail sales excluding auto increased 9.7% year over year while e-commerce increased 10.9% and in-store retail sales increased 9.2%.
                            • Holiday sales and marketing are expanding well beyond Black Friday and Christmas, according to Forbes. Holiday sales and promotions now start in early fall and run through the New Year. Shopping events and the saving opportunities they bring will be more important than ever. Consumers are reducing spending and will be looking for events where they can save on their purchases due to the current global economic downturn and high inflation.
                            • Retailers are promoting their readiness to meet demand in key categories this holiday season. Experts say that the heightened readiness is partly due to higher-than-usual levels of inventory across the board as a result of delayed orders from Q1 and Q2 that have only recently arrived, compounding existing orders for the season. Current economic trends such as inflation will likely encourage consumers to spread out their shopping over a longer time period, according to Neil Saunders, managing director of GlobalData. He added that shopping earlier also mitigates the risk of order delays due to supply chain challenges.
                            • Airports are struggling with high demand as pandemic-related problems continue. "Too many employees and resources are still unavailable, not only at our infrastructure partners but in some of our own areas, too," officials at German airline Lufthansa said in late June. Experts say that in almost every case, the problem is that too many experienced people were let go during the pandemic, and that airlines, airports, and other key parts of the aviation system have not hired and qualified enough people to replace them. "Between their own research, research that my company and others have conducted, and their reservations systems, airline executives should have seen -- and thus should have known -- that there would be strong demand to travel again," said Henry Harteveldt, principal at market research and advisory firm Atmosphere Research.
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