Party City Is Not Celebrating Store Closing
Have you ever thought that there could be a shortage of helium? Well if not, then you’re in for quite the surprise.
Amid a global helium shortage, Party City announced Thursday, May 9 that it will shut down 45 stores in 2019. The New Jersey-based party supplies company did not release a list of affected stores but said the closures will take place throughout the rest of the year.
There is a total of 870 Party City stores in the U.S. and Canada, and the closures represent about 5 percent of locations. So far there have been reported closings in California, Illinois, Connecticut, and Washington.
Party City CEO James Harrison said in a statement published on the Party City website that the company typically closes 10 to 15 stores each year.
“It’s important to note that Party City’s decision to close an increased number of stores in 2019 is completely unrelated to the global helium issue. The decision to close 45 stores in 2019 is part of our network optimization process focusing on maximizing store performance on a market basis,” Harrison said.
In the case of the helium shortage, it “negatively” impacted Party City’s “latex and metallic balloon categories.” Balloons are big business for Party City, however, sales fell 8 percent last quarter, bringing overall sales down 1.4 percent at stores last year. A major player in the balloon business is helium, which brings people to the actual store, but with the helium shortage, customers have been searching elsewhere for their party goods.
On Earth, helium is a finite resource found in pockets buried under rock. It’s difficult to capture because it floats but is collected when drilling or fracking for natural gas. The problem is that helium makes up a tiny percentage of the gasses trapped under rock formations.
As for Party City, the company signed an agreement with a new helium supplier, believing that they can help the company return its balloon business back to normal starting in the summer. Party City also hopes the new supplies will last for the next two-and-a-half years.
By: Maytinee Kramer
