Gift, Novelty & Souvenir Stores
Companies in this industry operate physical retail stores specializing in gifts, novelty items, greeting cards, and souvenirs. Major companies include Hallmark, shopDisney, and Spencer's (all based in the US), as well as Card Factory (UK), and kikki K (Australia).
Countries with growing middle-class populations, such as India, are emerging markets for gift retailers. Some major US gift retailers also operate outside of the US via franchises or company-owned locations.
The US gift, novelty, and souvenir store industry includes about 22,000 stores with combined annual revenue of about $16 billion.
Competitive Landscape
Consumer spending, special occasions, and tourist travel drive demand. The profitability of individual companies depends on effective merchandising and the ability to generate store traffic. Large companies have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by selling specialty products, providing superior service, or delivering a unique customer experience. The US industry is fragmented: the top 50 companies account for about 50% of sales.
Gift stores compete with a wide range of businesses because they stock merchandise across many categories. Major competitors include mass merchandisers, department stores, internet retailers, home shopping channels, warehouse clubs, and toy stores.
Retail imports surged ahead of tariffs imposed on goods from China that took effect in September 2019 and are likely to do so again in December, when new tariffs on a wide range of Chinese imports are slated to take effect, according to the National Retail Federation citing data from Global Port Tracker. While the Trump administration's trade war with China will likely lead to higher retail prices -- especially for smaller operators that have little sway with suppliers -- many gift stores have been increasing their focus on American-made goods and local handicrafts due to the rising cost of doing business with China and to differentiate themselves from their competitors.
Products, Operations & Technology
Major products sold by gift stores include souvenirs and novelty items (about 60% of sales). These are followed by other home furnishings, toys, games,
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