Even as American consumers continue to grapple with inflation and declining confidence in the economy, candy stores in and around New York City are witnessing steady growth, with retailers saying affordable treats remain a popular indulgence during financially challenging times.
Mitchell Cohen, the third-generation owner of Economy Candy, one of New York City’s oldest candy stores, believes inexpensive sweets continue to attract customers regardless of economic conditions. Established in 1937 during the final years of the Great Depression, the family business originally operated as a hat and shoe repair shop. However, when customers could no longer afford repairs, Cohen’s grandfather shifted the business entirely to selling candy, a decision that has sustained the store for nearly nine decades.
Although official figures show that US retail sales rose 4.9% in April compared to the same period last year, consumer confidence dropped to a record low in May, reflecting growing concerns over inflation and economic uncertainty. Retailers say this has encouraged shoppers to seek small, affordable pleasures instead of making costly purchases.
Kate Bolger, who is preparing to open The Village Confectionery in Sleepy Hollow, New York, believes candy appeals to consumers because it remains within almost everyone’s budget. A former movie producer, she says shoppers may postpone expensive spending but are still willing to treat themselves to a small luxury. Her view reflects the so-called “lipstick effect,” an economic theory suggesting that consumers often buy inexpensive indulgences during downturns rather than high-priced goods.
The growing popularity of specialty confectionery has also encouraged expansion by premium candy retailers. BonBon, a Swedish-inspired candy company founded in 2018, has expanded to several locations across Manhattan, Brooklyn and the Hamptons, with another outlet planned in Connecticut. The company focuses on neighbourhood locations with lower rents instead of expensive commercial streets, while also creating distinctive shopping experiences through unique store designs and branding. Another Swedish chain, Candy King, entered the US market last year by opening its first outlet in Manhattan.
Brooklyn-based Candor Candy’s has also adopted a diversified approach by selling pantry staples alongside sweets to strengthen revenues. Its owner points out that candy offers practical business advantages, including a long shelf life and minimal storage requirements.
However, candy retailers continue to face rising operating costs. Cohen says wholesale prices have increased significantly because many confectionery ingredients are imported, making them vulnerable to tariffs and higher transportation costs. He noted that the wholesale price of a Hershey chocolate bar has increased from about 62 cents before the pandemic to more than a dollar. Despite these challenges, he says his store has absorbed much of the additional cost and continues to record higher sales, proving that even in difficult economic times, affordable treats remain in demand.
