Gift Shop Industry Analysis

Topics: Retailing, Souvenir, Gift Pages: 2 (556 words) Published: November 14, 2012
Target Market:
According to the US Census Bureau, households account for an estimated 96% of the market. The remaining 4% of the industry includes other retailers, wholesalers and commercial buyers that purchase industry goods for resale or end-use. Consumers earning between $10k and $40K are estimated to account for 32% of all sales in 2012 Consumers in lower income brackets are more likely to turn to discount retailers Those earning $40K and up are projected to account for a little less than half of the consumer market --This group generates high demand for both gifts and souvenirs --tend to shop at specialty stores that specialize in more high-end products and gifts. 2/3 of consumers are female-more involved in gift and souvenir purchases

Gift Shops and Card Stores
Includes a range of gifts, gift-wrap, novelty merchandise, souvenirs, greeting cards, party supplies, seasonal and holiday decorations. Purchase costs are expected to remain the largest expense for the industry accounting for 64.5% of total sales

Industry Trends and Growth:
Revenue: $15.5B
Estimated Revenue in 2017: $14.1B
Profit: 525.6M
Annual Growth 07-12: -6.1%
Annual Growth 12-17: -1.9%
Businesses: 69,930
Souvenirs makeup 31.5%
The industry as a whole is on a decline. There are low barriers to entry but there is a high competition level. Sensitive to recessions
Continued improvements in consumer spending conditions are projected to aid the industry’s growth over the next five years. Disposable income and tourist activity all increase, demand for gifts and souvenirs is expected to rise Growth in international tourism will benefit the industry, as demand for souvenirs rises The industry will be positively affected by the continued recovery of domestic tourism that began in 2011 Inbound visits to the US are forecast to rise at an average annual rate of about 5.4% over the five years to 2017, while the number of domestic trips is projected to increase at an average...
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