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Early Addition
A friend recently moved into a new apartment with a large kitchen, and I'd like to buy her some neat kitchen items for her new place. Besides the usual places like Bed, Bath and Beyond, what are some specialty stores that sell nifty kitchen items? 
We love kitchen gadgets - even though our kitchen is the size of a postage stamp. We're particularly fond of A Cook's Companion in Brooklyn, on Atlantic Ave. They have a good selection and the staff are really friendly and helpful and the prices are reasonable.
If you're Brooklyn-phobic, you can try Broadway Panhandler in SoHo. If your friend likes to bake, New York Cake and Baking Supply Co. (on W. 22nd st) has all sorts of unusual cake-decorating items. Ask Gothamist's Doug Gordon also recommends Bridge Kitchen.
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I'd take a different approach -- first, think about the kind of cooking your friend wants to do. There are a lot of basic tools your friend may already have, since she has chosen a place with a large kitchen...
And then I would go to Bridge Kitchenware, at 214 E 52nd St. I've never seen a store with a wider selection of tools in New York.
If, however, your friend is into baking, I think New York Cake & Bake Supply (on 22nd Street, between 5th & 6th A's) has a deeper selection in that specialty.
You'll probably pay more at each of these stores than you would at Bloodbath & Beyond IF BB&B carried the same item. So think about that, too.
There's also the upstairs kitchen store at Zabar's, which I've liked better than Broadway Panhandler, though that might have been my UWS bias.
An alternative is to go down to the various restaurant supply stores down on the Bowery (starting at, say, Houston with Chef and working down). Less shiny All-Clad stuff, but good stuff nonetheless, and relatively inexpensive.
I'd advise against NY Cake and Baking if you're looking for a gift. The staff there is downright rude. I went there to try to find a Christmas gift for my wife and unless you know exactly what you want (thus not requiring any interaction with the staff) you're out of luck. And in for an unpleasant experience. It always baffles me when a small merchant doesn't seem to care that my money's walking out the door.
Broadway Panhandler, on the other hand, is very helpful and patient if you don't know a whisk from a wiskbroom.
Zabar's! Oh lord, I fell in love with copper pots there, and they had tons of Le Crueset on sale!
I would agree with Frank. Many cooking items oriented stores are more expensive than the items you find at BBO.
Bridge Kitchen supply has moved to bigger, brighter, cleaner digs. The entrance is on 45th St., east of 3rd Ave.
And surprisingly enough, BB&B prices aren't always wowser great. I got a dish rack and canisters there without comparison shopping and found them later at cheaper prices (Crate & Barrel and The Container Store).
The Bowery kitchen shops are great. For utilitarian-type stuff, like a kitchen cart or shelving, have your measurements ready. Other shops let you browse and explore -- interesting dishes and glasses from China, for instance.