We stumbled upon Powell's Sweet Shoppe in Los Gatos yesterday. It's a really fun place!
It's an old-fashioned candy store with lots of new twists. There's all kinds of "nostalgia" candy and funky new stuff as well. They also have a gelato bar and movie theater seats in the back where "Willy Wonka and the Chocolate Factory" plays on a loop.
If you're in the neighborhood, it's definitely worth a visit.
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