Dive Brief:

• Party City on Thursday said it is introducing a new store format and will accelerate remodels based on a successful pilot program, according to a company press release.
• The company has redesigned its balloon shopping experience, which includes a dedicated service area. The new format includes two birthday worlds in each store — one for kids and another for general birthday celebrations. 
• The format allows the retailer to test new product assortments, especially those focused on kid celebrations, such as trending toys, party favors and other items. 

Dive Insight:

Party City’s decision to accelerate its new format stems in part from positive customer feedback. The retailer plans to launch the format in several U.S. locations in the first half of this year. 

“With this introduction, we have moved away from the traditional aisle experience,” Dion Miliaresis, vice president of merchandising at Party City, said in a statement. The birthday worlds, or “mini-shops,” make it easy for customers to find what they need in one place and encourage product discovery, Miliaresis said. 

Party City is reshaping stores following bankruptcy proceedings. In January 2023, the parent company of the retailer filed for Chapter 11 bankruptcy protection and said that it had received a $150 million debtor-in-possession loan to aid in its restructuring process. Last October, the company finalized its restructuring initiative, exited bankruptcy, wiped away nearly $1 billion in debt, renegotiated leasing terms and closed underperforming locations. 

Brad Weston, Party City Holdco’s CEO, left the company in November, and Sean Thompson, president and chief commercial officer, became its interim chief executive. That same month, Anagram, a balloon manufacturer and Party City Holdco subsidiary, filed for bankruptcy

Amid its bankruptcy, Party City extended its physical reach. The party goods retailer partnered with Winn-Dixie to open a Party City shop-in-shop last year.