Originating from the Peninsula Boutique at The Peninsula Hong Kong, this operation has rapidly expanded in recent years. Peninsula Merchandising develops and sells a range of Peninsula-branded food products, gift items and award-winning cookbooks.

The Peninsula Boutique at the Hong Kong International Airport was the first external outlet opened beyond the vicinity of a Peninsula hotel. In November 2004, The Peninsula Boutique in Mitsukoshi's flagship department store in Tokyo became the first overseas external boutique to open, followed by additional locations in major department stores in mainland China, Japan and Taiwan.

Peninsula Merchandising also offers online shopping in Hong Kong, Japan and South Korea with additional overseas websites being gradually introduced.