Dive Brief:
- As it works to increase its market share in the party supplies space, Michaels announced it is boosting its party product assortment by 60% this year, according to a company press release.
- The company plans to add nearly 600 new items this year, including piñatas and party supplies featuring characters such as Hello Kitty, Bluey and Stitch. The retailer is also introducing drinkware and utensils for special occasions.
- Starting this month, the retailer will begin introducing DIY bars, where customers can customize their celebrations with personalized party favors, banners and packaging.
Dive Insight:
Michaels’ party push is one piece of the company’s pursuit of market share following the bankruptcies of Party City and Joann in recent years. Earlier this year, Michaels CEO David Boone said the company has “an ambitious merchandise optimization and transformation agenda” to take advantage of the shift in the market.
Michaels last year began offering more in-store celebrations for kids and adults, and widened its selection of balloons and other party supplies.
Beyond its DIY bar and broadened party assortment, Michaels wants to attract customers seeking to celebrate on a budget. In its announcement, the retailer said it reduced prices on birthday parties and on hundreds of party essentials.
“As North America's ultimate celebration destination, we are committed to being the true one-stop shop, delivering a differentiated selection and exclusive experiences — from our industry-leading balloon services to our brand-new customization bars — that empower our customers to transform any milestone into something truly extraordinary,” Boone said in a statement.
The party product expansion is all within Michaels’ shop-in-shop format, The Party Shop, which debuted in September and features tableware, themed paper goods, balloon arch kits and a balloon bar.
Meanwhile, Party City has reemerged, at least in part, following its bankruptcy. Last month, the party supplies retailer teamed up with Staples to build shop-in-shops within more than 700 of the office supply retailer’s stores.
