no shortage of nyc novelty stores: how do they survive?
Is the demand for tchotchkes and NYC merchandise really that high?
Photo courtesy of Unsplash
NEW YORK, NY — “They’re everywhere!” quipped a young man moving through the barrage of flashy NYC-themed souvenir shops at the intersection of Canal Street and Mulberry Street. His hand grazed the rotating display of “MAFIA,” and “WALL ST’ license plates as he peered through an eclectic collection of sun-faded merchandise hung from an equally sun-faded awning and into the store––not a customer in sight. Baby onesies that read “Mommy’s Little Meatball” next to adult T-shirts that read “F*ck You You F*cking F*ck!” and “New York F*cking City”. Unimpressed, the young man left without buying anything.
In just a three block radius around the intersection of Canal and Mulberry, the once Italian enclave now has at least 15 novelty shops and stalls selling everything from Lady Liberty tea towels to Donald Trump bobbleheads. It’s not just Mulberry either—these shops are all over Manhattan. Sometimes even more ubiquitous than Starbucks. But, if all these stores have seemingly the exact same inventory, how are they surviving? How could they possibly be making enough to keep their (obnoxiously bright) lights on?
The answer may be simpler than you think. In the same amount of time it took that young man to peer through the store, two young girls across the street had locked eyes with the ten-foot-tall Statue of Liberty replica standing next to the display of license plates. A few moments later they exited the store, each holding a similar Lady Liberty figurine. These 15-inch figurines—priced at $32.95— can be found on public-facing wholesale websites like Alibaba for $.90 each. Without tax, this is a $64.10 profit margin.
On a brisk November afternoon, commuters exiting the West 4th Street Subway Station in Manhattan were immediately met with a vibrant multi-colored rendering of Lady Liberty on a digital JCDecaux bus shelter. The hot pink background of the advertisement read: “We’re so happy you’re here,” signed by the city’s official convention and visitors bureau, NYC & Company.
Just a few days earlier, NYC & Company launched the next phase of its $30 million global tourism marketing campaign, titled “It’s Time for New York City.” This phase touts the Statue of Liberty’s 136th birthday, as well as the recent reopening of the statue’s crown. According to NYC & Company’s annual report, the campaign has generated $5 billion in visitor spending and more than two million trips booked in the first half of 2022.
In the heart of Times Square––arguably the largest tourist destination in Manhattan––is NY Gifts. Just like every other novelty store across NYC, every square inch is covered in branded merchandise: hundreds of snowglobes, keychains, nail files, condoms, dog apparel, placemats –– anything one could possibly want branded with the “I❤️NY” graphic, they probably have it. In fact, if they don't, walk 100 meters and it will probably be at the next novelty store. Better yet, it may be at one of the other eight identical locations on Broadway Street operating under the same owner.
Although unaware of the city’s tourism recovery campaign, employees at NY Gifts were appreciative of the influx of tourists this past summer. “It’s been festive and it has felt really good,” said sales associate Sajid Amin. While unable to disclose the store’s daily revenue, Amin said that the store sells “more than enough” fridge magnets, keychains, and any variation of their “I❤️NY” to keep their lights on.
Another associate, Jamil Ibrahim, said that the store’s daily revenue has almost returned to pre-pandemic numbers. “Before the pandemic this was the busiest street. The people are still coming back,” said Ibrahim.
The Times Square official website “provides 24/7 data on the number of pedestrians who enter and pass through specific counting zones of the Times Square Bowtie.” It is estimated that nearly 360,000 people walk through the area daily. The count has shown as many as 450,000 pedestrians in a day, or as low as 125,000—peak pandemic.
For many tourists, no visit is complete without a T-shirt, fridge magnet, or any other memorabilia to commemorate their time in “The Big Apple.” If even just one percent of those passing through Times Square on any given day were to spend $20—roughly the price of one “I❤️NY” T-shirt and a matching keychain—the collective area would make $72,000 per day, or nearly $2.2 million per month.
Back downtown on Mulberry St. is MD A. Sarker’s storefront, LaLa Trading Inc. Unlike NY Gifts, Sarker operates independently and has nobody on his payroll. Sarker previously occupied the space next door, however, having only received $40,000 in loans from the Paycheck Protection Program in 2020, he wasn't able to keep up with his monthly rent of over $16,000 between the two storefronts. “The landlord kept asking for money, but I didn't have income. It was a big problem,” he said leaning on a pile of neatly folded NYPD shirts. “I lost a lot of money.”
Still recovering from his losses, he is grateful to at least be breaking even now. “Every month is getting better,” he smiled.
However, other stores in this area are not feeling as lucky as Sarker. At the intersection of Mulberry and Hester is Tarun Kamar’s store, Little Italy Gift Center. The space is about four times larger than Sarker’s, and his monthly rent is over $30,000. Kamar also declined to disclose revenue, but did say that he does not make enough to support his rent. “Before the pandemic we were doing okay, but now we don’t even make half of that,” he said.
Kamar may have some downsizing to do, but he is also working on building a stronger ecommerce website. “Souvenir stores will always be popular business,” he said, “our business is an important part of the tourist experience.”
Originally written ‘on spec’ for Professor Tyler Kelley’s News, Narrative, and Design II class at The New School.
