New York
CNN
—
The collapse of Party City is giving Michaels an opportunity to expand its selection of balloons and other celebration-themed supplies.
Michaels, the retailer best known for selling arts and crafts supplies, announced Tuesday that it’s expanding its party supply offerings with the addition of 300 new balloon options and more than 500 new products for all types of celebrations, ranging from graduations to birthdays.
The expansion comes after Party City filed for bankruptcy last year and closed its 700 US stores in late February. The 40-year-old chain was the largest party supply store in the nation. Its exit has left a major gap in the market for party-throwers.
Some shoppers have gravitated towards Michaels, with searches for party supplies on its website soaring 155% and balloons jumping 150% since the beginning of the year, the company said in a press release. (Michaels is a privately owned company and doesn’t release financial figures.)
Balloons are one of the biggest voids left by Party City’s closure. That has prompted Michaels to add more licensed balloons for sale, including animated characters for kids parties, as well as premade or grab-and-go balloon bouquets. They can be ordered on DoorDash and Instacart, too.
Michaels is also expanding its in-store parties options, where the chain said it’s seeing “strong momentum” as “shoppers explore crafting as a means of connection.”
Last year, Michaels hosted 5,000 parties, serving 42,000 kids across the US and Canada, according to a press release. This year, the retailer is adding new seasonal themes and “reimagined” in-store events, including arts and crafts activities that start at $10.
Expanding its party supply selection “makes perfect sense,” said Neil Saunders, managing director of retail for GlobalData, because the chain is “already strong in seasonal decor” like Halloween and Christmas.
He told CNN that although selling party supplies wasn’t financially viable for Party City, the “incremental revenue is tempting” for Michaels. “That said, other retailers will also be vying for their share, so there will probably be a continued battle for market share.”
Michaels has 1,300 stores across the US and Canada and bills itself as the “leading creative destination in North America.”
