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| Countries covered: United States Brief Excerpt from Industry Overview Chapter: The US gift, novelty, and souvenir store (gift store) industry includes about 30,000 stores with combined annual revenue of about $18 billion. Major companies include Hallmark, Spencer Gifts, and Disney Stores (a division of The Walt Disney Company). The industry is fragmented: the top 50 companies account for about 30 percent of sales. 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 industry is labor-intensive: average annual revenue per worker is about $60,000. 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. PRODUCTS, OPERATIONS PRODUCTS, OPERATIONS & TECHNOLOGY TECHNOLOGY Major products sold by gift stores include souvenirs and novelty items (25 percent of sales), seasonal decorations (12 percent), greeting cards (10 percent), and giftware (5 percent). Novelty items include gift baskets and pre-filled balloons. Seasonal decorations include decorative cups, plates, and napkins. Giftware includes glassware and vases. Gift stores may also sell home accessories and provide services such as gift-wrapping and delivery. Gift retailers include national and regional chains and independent retailers. Hallmark stores operate through licensing agreements with independent owners. The majority of... |
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