Retail Gift Shops

The gift giving industry generally benefits from a healthy economy in which consumers have disposable income available to spend on non-essential consumer goods. As a result, there have been new entrants into the industry including: 1. individuals who have worked extensively as employees in the retail gift shop industry who begin their own business, 2. hobbies that evolve into businesses and 3. Retirees who begin their own business. A leading research company estimated that U.S. retail sales of giftware have risen to $20.9 billion last year, and will continue to increase annually. However, geographic location seems to have substantial impact on profitability (high tourist areas seem to be the most profitable).