'A little goes a long way': New York's candy stores sweeten economic gloom

When Times Are Tough, People Still Buy Candy

With US consumer confidence reaching historic lows, it might seem like a strange time for retail expansion. Yet in and around New York City, one unexpected sector is flourishing—candy stores. While many retailers struggle to maintain sales amid economic uncertainty, candy shops are opening new locations, with owners citing an enduring consumer desire for small indulgences.

This pattern isn't new. In fact, it echoes decades of economic cycles where the purchase of affordable luxuries, such as candy, continues to persist even during downturns. As Mitchell Cohen, third-generation owner of Economy Candy on Manhattan's Lower East Side, puts it: "Inflation, uncertainty, all that, but there's always candy."

"The dollar isn't going as far these days," Cohen said. "Inflation, uncertainty, all that, but there's always candy."

From Hat Shop to Sweet Haven

Economy Candy, which opened its doors in 1937, is among the oldest sweet shops in New York City. Originally established as a hat and shoe repair business with candies sold from a cart outside, it pivoted entirely to confectionery during the Great Depression—when customers could no longer afford repairs.

"People couldn't afford to get things repaired," Cohen explains. "So my grandfather entirely pivoted to what was still selling – the affordable sweet treats." Eighty-nine years later, Economy Candy remains a staple of the Lower East Side, demonstrating resilience through generations of economic hardship.

The Lipstick Effect in Action

While this phenomenon may seem anecdotal, it aligns with a broader economic theory known as the "lipstick effect." This term, popularized in the early 2000s, refers to how consumers often turn to small luxury items when they can't afford major purchases. Candy fits this profile perfectly—affordable, universally appealing, and a form of comfort that transcends income levels.

"Everyone can partake," says Kate Bolger, who is set to open The Village Confectionery in Sleepy Hollow, New York, later this month. Bolger, formerly a movie producer, believes that while consumers may be cautious with large purchases, they still want to treat themselves to something small and satisfying.

Global Trends and Local Expansion

This economic resilience is also reflected in the global expansion of candy stores. In New York, the Swedish confectionery company BonBon has opened five shops across Manhattan and Brooklyn since its founding in 2018. The brand's unique approach—focusing on small, cozy spaces rather than high-traffic areas—has allowed it to thrive while avoiding excessive rent costs.

"You wouldn't want to be on Broadway," BonBon co-founder Leo Schaltz explains. "Instead, we go for side streets, where the rents are lower, and take over small units." Their aesthetic also plays a role: staff uniforms inspired by Stockholm restaurants and quirky details contribute to a welcoming atmosphere that resonates with New Yorkers.

Meanwhile, Swedish candy chain Candy King opened its first US location in Manhattan last December. In Brooklyn, Cat Cirino's Candor Candy's launched in Fort Greene, offering pantry items like granola and beef jerky from independent producers to supplement her core sweet offerings.

Challenges in an Unstable Supply Chain

Despite their growth, candy store owners face significant headwinds. Many confectionary supplies are imported, making them vulnerable to global supply chain disruptions and rising costs. For example, Mitchell Cohen notes that import tariffs imposed by President Trump have significantly increased wholesale prices.

"A Hershey chocolate bar that cost my shop about 62 cents pre-pandemic now comes to more than a dollar," he explains. "For while Hershey's is a famous American brand, the cocoa beans it is made from come from overseas."

Cohen also reports that some of his UK suppliers simply stopped shipping to the US after incurring heavy customs losses. These challenges are not unique to candy stores—they reflect broader struggles within retail as global logistics costs rise and trade policies shift.

Resilience Through Adaptation

Yet despite these issues, many candy store owners report increasing sales. Cohen, for example, absorbed most of the cost increases himself, finding that his customers remain loyal to the sweet indulgences they crave. "In these tough economic times," he notes, "a little candy goes a long way."

This enduring consumer preference for small luxuries suggests that even in difficult economic conditions, people still seek moments of joy and reward. Whether it's a single candy bar or an elaborate sweet shop experience, candy remains a consistent comfort item across income levels and economic cycles.