How to Grow Your Souvenir Shop

How to Grow Your Souvenir Shop

Tourism-based retailers face challenges unique to their industry. Despite the significant economic benefits of tourism, with $8.8 trillion and 319 million jobs brought to the global economy, there is one major drawback: customers visit for only a short time.

To succeed, tourism-based retailers must know how to master their vertical and attract customers creatively. Here’s how souvenir shop businesses can become a must-visit destination for tourists and locals:

1. Use margin-builders

Margin-builders are products purchased wholesale at a low price and sold for a higher profit. Retailers have to strike a balance: too many margin-builders can make the store seem basic or overpriced, while none make it difficult to profit on low-margin goods. Popular margin-builders for souvenir shops include customized printed cups, magnets, shot glasses, and lip balm.

2. Sell work by local artisans

The global artisan movement generates $34 billion annually, and consumer demand for artisan-made products is rising. Souvenir shops can stand out by sourcing goods from local artisans within their communities. These products may have lower profit margins but help the store differentiate itself. Retailers can negotiate better wholesale pricing by committing to a certain amount of goods monthly. Jewelry, cosmetics, and clothing with unique local designs are particularly popular.

3. Improve curb appeal

Souvenir shops should create a visually appealing storefront that entices passersby. Vibrant murals, unique sculptures, and creative signage that matches the brand can catch a potential customer’s attention. The shop should provide opportunities for selfies and immersive in-store displays to draw in tourists and build an online community. A memorable and Instagrammable appearance will result in increased foot traffic and sales.

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By implementing these strategies, souvenir shops can overcome the challenges of the tourism industry and grow their businesses successfully.

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