Party City extends the celebration online

Party City Holdco Inc. is looking to broaden its e-commerce reach.



The 900-store, vertical operator of the Party City and Halloween City party goods chains is launching a new e-commerce partnership with Staples Inc. Products manufactured and sourced by Party City will be merchandised and sold on Staples.com.



“We are delighted that we have entered into this e-commerce fulfillment relationship with Staples,” said Jim Harrison, CEO of Party City Holdco. “We look forward to adding other marquee retailers this year as partners in this growth avenue for our company.”



The partnership makes sense for both participants. Staples has been losing share of its core office products business to competitors from other verticals, including mass merchandisers like Walmart and e-commerce platforms like Amazon.com.



In response, Staples has been broadening its product assortment and also delving into areas such as small business services. Offering party goods online is another way for Staples to generate new revenue streams.



For Party City, getting its merchandise sold on the Staples e-commerce site greatly increases the breadth and depth of customers it reaches online. Staples’ business is also steadier than Party City’s, as it is less focused on seasonal events or specific holidays. The pending Staples-Office Depot merger could potentially open OfficeDepot.com to Party City as another new e-commerce channel.