Specialty retailers are facing intense pressure in today’s economy—and many of them aren’t surviving it. Rising labor and product costs, supply chain issues, and shifting shopping habits have created a storm of problems that even well-established brands are struggling to navigate.
The challenges are especially sharp for niche retailers, who serve specific customer segments with little room for error. From greeting card shops to boutique baby products, businesses are getting squeezed from all sides—and some are turning to bankruptcy as a last resort.
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Pressures
Over the past two years, specialty retailers have been hit with a series of economic challenges. Inflation pushed up the cost of labor and raw materials. Tariffs increased expenses on imported goods. And rising interest rates have made borrowing money more expensive, cutting into already-thin margins.
Then there’s the change in consumer behavior. Shoppers are visiting physical stores less frequently, which has left many retailers stuck with lease obligations that no longer make financial sense.
Decline
Niche markets, by their nature, leave little room for error. That’s especially true for an industry like greeting cards, which is slowly shrinking. According to IBISWorld, greeting card industry revenue is expected to fall to $5.6 billion in 2025, down from $5.7 billion in 2024.
Yet, Americans still buy 6.5 billion greeting cards annually. Hallmark and American Greetings dominate the market, accounting for around 80% of sales. So where’s the gap?
Millennials
Ironically, millennials—the generation credited with “killing” countless industries—are now the largest buyers of greeting cards in terms of dollars. According to George White, founder of pop-up card company Up with Paper, millennials have actually helped save the industry.
Even so, that hasn’t been enough to keep physical Hallmark stores open.
Closures
Back in the day, Hallmark Gold Crown stores were everywhere—from regional malls to strip centers. They were a go-to stop for birthdays, holidays, or just-because cards.
But with the rise of e-cards and digital communication, the need to walk into a store to buy a card began to fade. Today, you can pick up a Hallmark card at just about any grocery store, big-box retailer, or pharmacy—eliminating the need to visit a specialty store.
That shift has led to hundreds of store closures over the past five years.
Hallmark Store Count Over Time
| Year | Store Count |
|---|---|
| 2020 | 2,000 |
| 2025 | 1,146 |
According to ScrapeHero, Hallmark now has roughly 1,146 stores left—down from around 2,000 in 2020, most of which were independently owned.
Bankruptcy
The pressures of the current economy finally became too much for Banner’s Hallmark, a major independent Hallmark Gold Crown retailer based in Gaithersburg, Maryland. On September 14, the company filed for Chapter 11 bankruptcy protection in the District of Columbia.
Banner’s operates 39 stores in Virginia and has been in business for more than 45 years. Though licensed to use the Hallmark name, it is neither a franchisee nor a corporate-owned chain.
The company filed with between $10 million and $50 million in both assets and liabilities.
Top Unsecured Creditors
| Creditor | Amount Owed |
|---|---|
| Hallmark Marketing Co. LLC | Over $6.4 million |
| Crown MAC | Over $5.3 million |
| PNC Bank NA | Over $3 million |
Despite the filing, the bankruptcy petition states that funds will be available to pay unsecured creditors once the case concludes.
Ezpz
Hallmark isn’t the only specialty retailer dealing with financial distress.
Ezpz, a Colorado-based company that sells oral care and feeding products for kids (and pet bowls too), also filed for Chapter 11 protection in June. The company launched in 2014 via Kickstarter and sells plates, cups, toothbrushes, and utensils both online and in select stores.
Though their products are sold in about 160 retail stores and on major platforms like Amazon, Target, and Pottery Barn Kids, the business model couldn’t generate enough revenue to cover costs. Filing for bankruptcy was necessary to restructure and hopefully recover.
Future
The struggles of Hallmark and Ezpz reflect a broader trend. Specialty retailers are facing more pressure than ever to evolve or disappear. High overhead costs, limited online reach, and increased competition from big-box stores and e-commerce giants have all made it harder to stay afloat.
Brands that were once household names are now fighting for survival. For some, like Banner’s Hallmark, a long legacy and a loyal customer base weren’t enough. Whether these companies can reinvent themselves post-bankruptcy remains to be seen.
FAQs
Why did Banner’s Hallmark file for bankruptcy?
Due to rising costs, debt, and shifting consumer behavior.
How many Hallmark stores are left?
About 1,146 stores remain as of 2025.
What is Ezpz known for?
Kids’ oral care and feeding products, plus pet bowls.
Are Hallmark cards still sold?
Yes, at many grocery, big-box, and online retailers.
Who are Hallmark’s biggest competitors?
American Greetings, Walmart, Target, and online e-cards.
