Party City debuts new store format, plans to accelerate remodels
Party City is introducing a new store format that highlights two of its key categories: balloons and birthdays.
Based on early success in pilot stores, the party supplies retailer said it plans to introduce the new format in several locations across the country in the first half of this year. Among other features, the design provides a reinvented balloon shopping experience that give customers easy accessibility to the breadth of Party City's extensive balloon assortment, which has a dedicated service area.
"The newest design delivers the benefits of the new balloon experience while also bringing birthday shopping to the next level, with birthday worlds,” said Dion Miliaresis, VP of merchandising at Party City. “With this introduction, we have moved away from the traditional aisle experience and have developed two birthday worlds within each store. One is dedicated to kids birthdays, and one for general birthday celebrations.”
The two “worlds” are complete mini-shops, with everything together in one place, Miliaresis added.
“This makes it easy for the customer to find everything they need and to hopefully discover a few surprises and fun ideas to add to their celebration along the way," she said.
The new format also allows for testing of new product assortments, with a focus on categories related to kids celebrations such as trending favors, toys and more. In addition, an updated queue experience allows for engaging, bold merchandising statements, with opportunities to continually adjust the featured items.
In early indicators, customers are responding positively to this new format, the company said.
"The customer is at the center of everything,” said Bill Lanza, head of stores at Party City. “This store format allows for a redefined shopping experience to help ease their celebration planning.”
The new merchandising approach is translating to increases in cross-sales and adjacent product categories, according to Lanza.
“These factors have prompted us to look at how we can accelerate this format and bring this experience to more of our customers across the country,” he said.
Party City's new format comes about five months after the chain emerged from Chapter 11 bankruptcy. The company closed approximately 60 stores as part of the restructuring plan, which eliminated nearly $1 billion in debt.
Party City Holdco Inc.is the largest vertically integrated designer, manufacturer, distributor, and retailer of party goods in North America. It operates across multiple businesses within its retail division and consumer products division.
On the retail side, Party City operates more than 750 company-owned and franchise stores. The Consumer Products Division includes celebration décor, tableware, costumes and accessories design and manufacturing entity Amscan.