Did you guys hear about Party City?! They’re about to close down a bunch of stores because of the helium shortage! Here’s what you need to know.
Party City will be closing 45 stores in 2019.
Stores have already begun to close in California, Illinois, Connecticut and Washington, but that’s just the beginning. These closures make up about 5% of Party City’s 870 total locations. Party City normally closes 10 to 15 stores every year, according to CEO James Harrison, to optimize their stores’ profitability.
No list of future stores closing has been announced yet.
Party City’s sales have been declining due to the helium shortage.
Helium is a finite resource that Party City depends on for balloon sales, a big reason people go to their store. There are three sources that produce 75% of the helium supply, and demand has grown while supply remains low.
They have signed an agreement with a new helium supplier that they hope will last them for the next two and a half years.
Your favorite Party City may be closing.
Some of the most profitable locations will be closing, but Party City thinks that with the number of locations they still have open, it will end up raising the company’s overall profitability.
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