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 13,700 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 about nine workers, and generates about $1.4 million annually.
- The gift and souvenir retail industry consists of about 13,700 companies that employ about 136,300 workers and generate about $19 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 (a subsidiary of 1-800-FLOWERS.COM), and Spencer Gifts (which also owns Spirit Halloween). Most Hallmark stores are independently owned.
Industry Forecast
Gift and Souvenir Stores Industry Growth
Recent Developments
Jul 11, 2024 - Retail Spending Stabilizes
- US retail sales were fairly level in May 2024 compared to a year ago, as consumer spending stabilized, according to a recent report from research firm Circana. According to Marshal Cohen, chief retail industry advisor for Circana, “The road to retail stability will be a bumpy one, as changes associated with seasonality combined with extreme year-over-year sales comps will bring more spending shifts for marketers to navigate. The good news is that if the price is right, the consumer will bite.” A recent survey showed that 40% of consumers will purchase an item immediately if there is a discount offer, rather than delay the purchase. Among different age groups, consumers aged 55 and older continued to be the only age group to increase their spending on discretionary general merchandise. Average monthly spending for the 55-plus group is up 4% in the first four months of 2024.
- Consumer confidence levels fell in June 2024, after an uptick in May, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.4 in June 2024 from 101.3 in May 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those in the income category of over $100,000. Plans for large appliance and smart phone purchases rose on a six-month basis, while plans for car purchases stalled.
- The US gift and souvenir stores industry is projected to grow at a CAGR of 0.76% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is slower than the overall economy's anticipated growth. Factors that continue to limit consumer spending are higher price levels and interest rates, though both are expected to improve in 2024. Post-pandemic, consumer spending has shown slower gains of 2.5% in 2022 and 2.2% in 2023, supported in part by savings compiled by households from federal pandemic relief programs. The report noted that consumer confidence levels are expected to improve in the forecast window, which bodes well for retail and wholesale industries. Additionally, consumer sentiment has experienced unusually low levels, though recently has shown a degree of improvement.
- A new UBS report in Retail Dive projects that 45,000 retail stores may close in upcoming years as online sales gain share. Online retail penetration is expected to rise to 26% from 21%, with retail sales growth of 4% by 2028, as the industry focuses more on fulfillment and distribution centers. If the closures occur, USB said the total number of stores in the US will fall from 958,533 to 913,500. Other factors driving store closures include a tighter lending environment, higher operational costs, and consumers spending more on services than goods. The report stated that sporting goods, clothing, consumer electronics, home furnishings, hobby, book, and music stores have closed the most locations since the first quarter of 2019. Still, retailers can incorporate existing stores as an important piece of their omnichannel capabilities. Per the report, “Our analysis assumes that stores remain an important part of the overall retail ecosystem for retailers and consumers. In the simplest terms, stores serve as hubs of fulfillment and support distribution logistics. This is increasingly more important as consumers are becoming more demanding for convenience or immediate deliveries.”
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.