Surprising Party Store Growth in Tough Times… Why?

Surprising Party Store Growth in Tough Times, Insider Explains why some Stores Flourish

Las Vegas, NV (PRWEB)

October 29, 2012

Party
Stores have been a staple of shopping centers and malls for years, and
one can usually be found in just about every community, stocking items
essential for parties like paper plates, plastic cups, plastic forks and
spoons, napkins, candles for cakes, balloons, and many more novelty
items. The busiest times are generally graduation and Halloween through
the New Year, but year-round individuals are celebrating one occasion or
another. As with most businesses, during the recession the industry as a
whole took a hit.

Less
disposable income and more anxiety about the economy have lead to many
individuals toning down their party spending. Establishments long
catering to birthday parties and other celebrations like Chuck-E-Cheese
and similar venues have been hit hardest and party rentals have been
decreasing, according to IBISWorld, party supply rental's fell an
average of 0.3% through 2011. Demand in this specific area has been
slowly recovering since 2010 however, according to the same source.

Bob
Kelliher, General Manager of Discount Party Store Developers, the
largest non-franchise independent developer of party stores in North
America, believes that while pricier “party” options such as those
offered by party rental companies and restaurants and other venues that
cater specifically to parties have had their share of problems, it does
not necessarily mean that people are “partying” any less, “It's not that
people are less inclined to throw a birthday party, or to celebrate the
Holidays or special occasions, the difference is really how they do it.
Instead of going out they stay at home. Instead of renting expensive
props and party supplies, they make do with what is in the home and seek
out a discount party store to get the essentials like paper plates,
balloons, and other items. They often can find party supplies for themed
events at a lower price as well. They ask themselves for example 'why
spend a few hundred dollars taking my daughter and her 10 friends out
for pizza when I can have pizza delivered and buy all the supplies I
need at the local party store for a fraction of the price?' That's where
certain party stores have an advantage. Not all of them though.”

Another major factor contributing to the success of some party stores is
pricing according to Kelliher, “You have to be able to sell items for a
lot less than the big box brands, but you still need to stock stores
with …Read the complete article

 
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