Party City stages comeback with nationwide Staples expansion

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Party City is mounting a comeback by expanding into more than 700 Staples stores nationwide. (Credit: Staples)

FRAMINGHAM, Mass. - Party City is staging a comeback by expanding into more than 700 Staples stores nationwide, a major distribution push after closing hundreds of locations in recent years.

Announced Tuesday, the partnership will bring Party City’s balloons, décor and party supplies to Staples stores and its website, with plans to expand to more locations through 2026.

Dig deeper:

The expansion follows a wave of store closures driven by financial challenges and restructuring. Rather than reopening standalone locations, Party City is now leaning on partnerships to rapidly grow its footprint at a lower cost.

Party City filed for Chapter 11 bankruptcy protection in January 2023. That move allowed for a restructuring that eliminated nearly $1 billion in debt. But "macroeconomic headwinds more recently proved too severe" to overcome, the company said.

Party City has faced growing competition from Walmart and Target and increasingly from occasion-based pop-up stores such as Spirit Halloween, which announced in October that it would also open 10 Spirit Christmas stores. That pressure has intensified in an era of rising prices, including for helium used in party balloons, and slowing consumer demand.

The timing aligns with graduation season, a major spending period for retailers. Nearly 4 million students are expected to graduate in 2026, with graduation-related spending exceeding $6.8 billion last year, according to industry estimates.

Staples, traditionally known for office and school supplies, has been broadening its in-store offerings to boost foot traffic and diversify its business. Bringing in Party City products is expected to attract celebration-focused shoppers while encouraging additional spending on services like printing and signage.

What they're saying:

"For as long as we can all remember, Party City has been the trusted go-to for balloons and party goods, known for quality, creativity and celebrations," Joel Weinshanker, CEO of Ad Populum, owner of Party City, said in a news release. "As we take the new Party City to more places than ever before, finding the right partners is essential. Staples stood out immediately, not only for its national footprint, but for its strong connection to the communities we have both been part of for years. It felt like a natural fit from the start. Together, we’re making it easier for our many millions of combined loyal customers to celebrate and party with confidence at their local Party City, now at Staples."

What you can do:

To support the launch, both companies are offering promotional deals, including discounts on balloons, decorations and custom printing services.

What's next:

The companies say they plan to expand the partnership to more locations over time, underscoring a broader effort to capture a greater share of event-driven consumer spending.