Dive Brief:
- Party City has lowered prices on over 2,000 products ahead of the holiday season. The move has resulted in average savings of approximately 20% across impacted items, the company said in a Tuesday press release.
- Party City has reduced prices on tableware, kids' birthday supplies, candy and latex balloons. The company said the move is an effort to make party goods more affordable.
- The price cuts began a few months ago and continued into last week with reductions to an additional 500 products on the cusp of “the busiest party hosting time of the year,” the company said.
Dive Insight:
Party City’s announcement to cut prices on thousands of items comes at a time when consumers are pulling back on discretionary spending.
“Consumers continue to feel pressure on their budgets in an environment of uncertainty, sometimes making joyous occasions feel stressful due to affordability," Litwin said. “We believe our latest price cuts will make celebrating more affordable with new savings available on many of the most frequently purchased items in our stores and online.”
Examples of the deals on offer include a 20-count pack of solid paper lunch plates reduced from $3.50 to $1.49; a 15-piece package of latex balloons cut from $3.80 to $1.49; and a 220-piece bag of mixed candy reduced from $15 to $11.99.
The specialty retailer filed for Chapter 11 early last year and emerged from bankruptcy protection about a year ago, shedding nearly $1 billion in debt, and reorganizing as a privately held company in the process.
Party City at the time attributed its difficulties to the COVID-19 pandemic, which led to the curtailment and cancellation of in-person celebrations and events — key drivers of the company’s core product offering.
But with the emergence and worst of the pandemic now in the past, the company, which describes itself as North America’s largest party goods retailer, has made several moves, including introducing a new store format this spring. The format features two mini birthday shop-in-shop offerings — one for kids and one for general birthday celebrations — that combine relevant party products in one space.
Party City has also brought on new leadership. In August, the company announced the appointment of Barry Litwin as president and CEO. Litwin came with extensive turnaround experience from retailers such as Sears and Office Depot.
The retailer, however, has also undergone a recent restructuring, according to multiple LinkedIn posts from former employees posted over the past week. Employees that formerly held roles including associate category manager, inventory planner and associate buyer posted that their roles had been eliminated. Party City did not immediately respond to multiple requests to confirm or comment on the layoffs or restructuring.
