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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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

                            Coronavirus Update

                            May 15, 2022 - Ruling That Ended Traveler Mask Mandate Appealed
                            • The US Department of Justice appealed a late-April ruling that struck down the US government's rule requiring masks to be worn on public transportation, most notably aboard airplanes. US District Judge Kathryn Kimball Mizelle said that the Centers for Disease Control and Prevention (CDC) exceeded its statutory authority and failed to properly justify its decision for imposing the mandate. The CDC had extended the mandate until May 3 just a few days before the mandate was struck down. The CDC issued a statement saying that it continues to believe that requiring masks in indoor transportation settings "remains necessary for the public health." CDC will continue to monitor public health conditions to determine whether such an order remains necessary, according to a statement from the agency. "CDC believes this is a lawful order, well within CDC's legal authority to protect public health."
                            • Sales at physical stores grew faster than e-commerce sales in 2021, according to a New York Times analysis of US Department of Commerce retail sales data. Americans spent 18% more year over year in 2021 on food, cars, furniture, electronics, and other retail products. Online retail sales increased by 14%. The difference indicates that e-commerce lost ground last year to brick-and-mortar stores.
                            • Hawaii, the last US state with a mask mandate in place, will allow the mandate to expire on March 25. Travel, a driver of demand at gift and souvenir stores, may increase as a result. The US Centers for Disease Control and Prevention's latest guidance recommends that people continue to wear masks indoors in communities with high levels of Covid-19. The agency last week said that more than 90% of US residents are now in a location with low or medium Covid-19 community levels.
                            • Travel may increase if the number of COVID-19 cases continues decreasing. New COVID-19 case rates continued a steep decline over the two-week period ending on March 12, with the seven-day rolling average dropping to roughly 34,000 cases a day, according to a New York Times COVID-19 case tracker. The US was averaging about 81,823 new cases per day on February 23, and that was down 66% from two weeks earlier. Experts note that the American population has different vaccination rates, levels of previous exposure to the virus, and degrees of underlying health conditions, so the trajectory of new cases could vary.
                            • The Centers for Disease Control and Prevention said that cleaning once a day is usually enough to minimize the chance of coronavirus transmission in most settings. Gift and souvenir stores are likely to benefit if the guidance results in lower pandemic-related cleaning costs. The CDC did identify one appropriate situation for deep cleaning: an indoor environment where a case of COVID-19 had been confirmed within the past 24 hours. Air Travel Slips as Cases Increase.
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