Another one bites the dust. Kind of.

Department 56 has been around a long time. They were a major staple for many gift stores. They have decided to cut their lines back to Christmas only. Showrooms will possibly close, jobs will be lost. Halloween is no more. Dang it, I was going to order from them next year!!

Eden Prairie, MN — Giftware vendor Lenox Group Inc. plans to scale-down its Department 56 wholesale business, according to a recent SEC filing. The plan involves discontinuing the Everyday, Halloween and Forchino collectible product lines and most of the company’s basic Christmas lines.
You can see the full article at giftsanddec.com

I’ve also received word from many of my account representatives that vendors are closing their showrooms at the Los Angeles mart, lines are being drastically scaled back and some vendors closed their doors completely. Many of my reps no longer have jobs.

I owned and operated a little boutique shop. I’m finding that many of them are closing due to overhead costs and lack of sales. Some have them have gone online. But the competition is fierce.

From my travels, I’m noticing that the gift industry is moving more towards the crafting industry. People are spending their money on craft kits, supplies and ways to personalize gifts. When you can’t spend a lot of money on a gift, you want to make it more special, personal and one-of-a-kind… or you make it yourself.

I wonder how the collectibles market will fare? Are people still adding to their collections, or is it a thing of the past?

That cute little store that you go to that’s overpriced and you visit to “get ideas”, they are either going to have to get really creative, competitive, they’ll close or they’re doing it for a hobby and profit doesn’t matter. (The profit doesn’t matter thing… it’s common!)

So, if you are thinking of opening a store right now, you have a lot to think about.