Economic Challenges and Candy Sales
With US consumer confidence at historic lows, retailers nationwide face difficulties. However, in and around New York City, candy stores represent a niche sector experiencing growth.
Mitchell Cohen, the third-generation owner of Economy Candy on Manhattan's Lower East Side, offers insight into this trend. He believes that even during tough economic times, people continue to purchase candy.
"The dollar isn't going as far these days,"
he says. "Inflation, uncertainty, all that, but there's always candy."
Economy Candy is New York's oldest sweet shop, having opened in 1937 during the final years of the Great Depression.
Originally, the business operated as a hat and shoe repair store, with candies sold from a cart outside as an additional source of income.
Cohen explains that as customers could no longer afford repairs, his grandfather shifted the business entirely to affordable sweet treats, which continued to sell well. Nearly nine decades later, Economy Candy remains successful.
Retail Sales and Consumer Sentiment
Recent official data indicates that US retail sales increased by 4.9% in April compared to the same month last year. Despite this growth, a prominent report shows US consumer sentiment reached a new all-time low in May.
Kate Bolger shares a perspective similar to Cohen's, noting that candy's low price point allows broad participation even as economic pressures mount.
Bolger plans to open The Village Confectionery, a candy store in Sleepy Hollow, a Hudson Valley town 28 miles north of New York City, known as the setting for the 19th-century horror story The Legend of Sleepy Hollow.
Formerly a movie producer, Bolger observes that while consumers may delay large purchases, they still indulge in small treats like candy.
"Everyone can partake"
she says.
This behavior aligns with the "lipstick effect" economic theory popularized in the early 2000s, where consumers unable to afford expensive items opt for smaller luxury purchases instead.
BonBon's Expansion and Swedish Confectionery
In New York City, BonBon, an upscale candy store company founded in 2018 by three Swedish expatriates, operates five shops across Manhattan and Brooklyn, with an additional location in the Hamptons on Long Island opened last summer.
BonBon imports its product range from Sweden, where confectionery regulations emphasize all-natural ingredients. Swedish sweets have gained global popularity recently, partly due to social media exposure.
Co-founder Leo Schaltz explains the company's strategy of avoiding main avenues to reduce rent costs.
"You wouldn't want to be on Broadway,"
he says.
Instead, BonBon selects side streets with lower rents and occupies smaller units, which also help create a cozy atmosphere.
"You don't want to overpay for rent, and it's easier to make a space feel cozy when it's smaller,"
Schaltz adds.
He also highlights the company's attention to "little, quirky details," such as staff uniforms inspired by a Stockholm restaurant. BonBon plans to open a branch in Greenwich, Connecticut, this summer.
Other Candy Ventures in New York
Swedish sweet shop chain Candy King opened its first US outlet in Manhattan in December last year.
In Brooklyn, Cat Cirino launched Candor Candy's in the Fort Greene neighborhood in March. To increase revenue, she also sells pantry items like granola, rice, soft drinks, and beef jerky sourced from independent producers.
Regarding candy sales, Cirino notes several advantages: candy has a long shelf life, can be stored at room temperature, and the pick-and-mix model allows customers to do much of the selection work themselves.
Challenges and Cost Increases
Despite the positive trends, Cohen acknowledges challenges. Many confectionery supplies are imported, leading to increased wholesale prices.
He attributes these rises to President Trump's import tariffs and higher global transportation costs caused by fuel price increases linked to the US-Israeli conflict with Iran.
"A Hershey chocolate bar that cost his shop about 62 cents pre-pandemic now comes to more than a dollar,"
Cohen notes.
Although Hershey's is a well-known American brand, its cocoa beans are sourced internationally.
Cohen also mentions that one UK supplier ceased shipping to the US after incurring losses due to customs fees.
Despite these obstacles, Cohen states he has absorbed most cost increases and reports that sales have risen.
"A little candy goes a long way,"
he concludes.
