Business Overview

Selling hats, which is what haberdashery businesses do, is a big business. Lots of people wear hats, for practical reasons and as fashion statements, and they spend a lot of money on their headwear. According to IBISWorld, the hat and caps retail industry has an annual revenue of $3 billion, and it continues to grow each year.

Who is this business right for?

Anyone who has an eye for fashion and likes headwear might be well-suited for running a haberdashery business. The work requires a knowledge of different fashion trends, and business owners frequently interact directly with customers.

Business owners can start a haberdashery business while working at a full-time job. One hat store owner, Corinne Prevot even began a business while in high school, and then she grew the business while in college.

What happens during a typical day at a haberdashery?

A haberdashery business owner spends their days assisting customers who want hats, selecting new styles to carry, ordering more inventory and restocking items when shipments come in. They also schedule manage any employees, promote their business and tend to administrative tasks, such as paying bills and filing taxes.

What is the target market?

A haberdashery business’ ideal customer is someone who is someone who has a strong sense of fashion and discretionary income. Such customers often purchase multiple hats, although not necessarily all at once.

How does a haberdashery make money?

A haberdasher business makes money by selling hats. Hats are sold on a per-item basis.

What is the growth potential for a haberdashery?

A haberdashery business can have a single storefront or website, or it may sell hats nationally and internationally through multiple outlets. Hatbox in Austin, Texas and Henry the Hatter in Detroit, Michigan are two examples of local hat stores. Goorin Bros., Inc. has hats at stores in 17 different states and Canada. An example of a large haberdashery business is Lids, which has stores throughout the United States and Canada.