On the Upper West Side of Manhattan, Kathleen Kelly runs The Shop Around the Corner, a beloved independent children's bookstore that she proudly inherited from her mother. Her connection with Frank Navasky, a thoughtful columnist at The New York Observer, is characterized by Frank's unwavering attachment to his typewriter, while Kathleen prefers the modern touch of her laptop and her AOL email handle “Shopgirl.” Under this pseudonym, Kathleen engages in delightful online conversations with NY152, a mysterious person whose clever anecdotes and charming insights have captivated her. However, despite their agreement to keep personal details private, she remains in the dark about NY152's true identity, aside from knowing he has a dog named Brinkley.
Meanwhile, Joe Fox, the real-life counterpart to the alias, is busy orchestrating the launch of Fox Books, a large chain bookstore, with support from his loyal friend Kevin, the branch manager. This new venture threatens to overshadow Kathleen's cherished shop, as they set up just blocks away from each other. Although her dedicated shop team—George, Aunt Birdie, and Christina—express concern over the looming competition, Kathleen remains confident that her unique store will endure.
Their worlds collide when Joe visits The Shop Around the Corner for a storytime event with his youthful relatives, including his 11-year-old aunt Annabel and 4-year-old half-brother Matthew. Although they share a pleasant exchange and part amicably, Kathleen's negative feelings towards Fox Books drive Joe to leave hastily, still unaware of each other's true connections.
At a nearby publishing party, Kathleen and Joe meet again, this time as their hidden identities start to unravel. Kathleen's frustration with Joe's perceived dishonesty only deepens, and Joe's dismissal of her shop’s charm cements their growing rivalry.
In her digital correspondence, Shopgirl reaches out to NY152, asking for guidance on how to combat Fox Books’ growth. He encourages her to take a stand, which leads Frank to write an impactful column highlighting the merits of The Shop Around the Corner, igniting media coverage, public protests, and heightened tensions. Despite Joe's annoyance at the backlash, his father reassures him that the situation will settle once the store opens.
As fate would have it, Shopgirl and NY152 bump into each other at a cozy café, where Joe is stunned to realize that his online counterpart is his professional rival, Kathleen Kelly. He considers a quick escape but ultimately chooses to stay, hiding behind anonymity, leading to a charged encounter filled with Kathy's sharp wit that leaves Joe flustered.
As the evening unfolds, Joe receives a heartfelt email from Shopgirl, who reveals her struggle to assert herself against adversity, followed by feelings of remorse. NY152 offers an understanding that any harsh words were likely warranted, setting the stage for the emotional rollercoaster ahead.
As The Shop Around the Corner suffers, the thriving Fox Books forces Kathleen to face harsh realities, compelling her to close the beloved shop and conclude her relationship with Frank amicably.
In the aftermath, Kathleen seeks refuge from her turmoil, reassessing her life and finding inspiration to create children's books through her communications with NY152. Conversely, Joe, now secretly enamored with Shopgirl, begins to develop an in-person bond while still guarding his online identity.
As their relationship intensifies, another secret meeting between Shopgirl and NY152 is on the horizon. Just as Kathleen prepares to arrive, Joe confesses his affection and asks for her forgiveness. Although Kathleen hints at her own feelings for both Joe and NY152, she is astonished at the revelation when she encounters Joe at their meeting place, where he is calling out to Brinkley, his dog. This unexpected twist sends Kathleen into a jubilant spin, and as their lips meet in a tender kiss, it becomes evident that their love has triumphed over all obstacles.
