Retail Apocalypse: Party City to Close 45 Stores Amid Helium Shortage

Retail Apocalypse: Party City to Close 45 Stores Amid Helium Shortage

Retailer Party City has announced it is going to close 45 stores amid a helium shortage in an effort to boost overall profitability of their stores.

Party City has announced the closing of 5% of their 870 locations. CEO James Harrison has denied these closures are related to the current global shortage of helium.  Helium supplies have been dwindling for the past few years, as about 75% of helium comes from only three places in the world. Party City’s mylar balloon sales reportedly fell eight percent in the last quarter, due to the shortage. In a statement, Harrison revealed that Party City is currently working to secure a new helium source. 

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He said in a statement on Thursday tied to the release of the company's 1st quarter financials, “Most importantly, we have signed a letter of agreement for a new source of helium which, subject to final execution of a definitive contract, would provide for additional quantities of helium beginning this summer and continuing for the next 2.5 years.  We believe this new source should substantially eliminate the shortfall we are experiencing at current allocation rates and improve our ability to return to a normal level of latex and metallic balloon sales.  We remain encouraged by the 2019 tailwinds that will present themselves later this year, including a strong IP calendar, a Thursday Halloween and anticipated benefits from supply chain investments that we made following disruptions that impacted the business in 2018.”

Retailers have closed a record of more than 6,200 store locations already in 2019.