Tags: helium | shortage | party city stores

Helium Shortage a Party Pooper for Party City

a party city store shown
(AP)

By    |   Friday, 10 May 2019 01:23 PM

Party City, the go-to place for party supplies, with nearly 900 stores across the U.S. and Canada has taken a massive hit from the global helium shortage.

The stores sell novelty items including party balloons and announced this week that it will be shutting down 45 of its 870 branches, The Independent reported.

It is common for massive chains to close down shops that are not performing well but James Harrison, chief exec of Party City, noted that this year that number had more than doubled.

"After careful consideration and evaluation of our store fleet, we've made the decision to close more stores than usual in order to help optimize our market level performance, focus on the most profitable locations and improve the overall health of our store portfolio," he said in a statement.

Balloons bring in big business for Party City, which generates a large profit from filling them with helium, but in the last quarter sales have dropped by 8 %, CNN Business noted. This has pulled down overall sales by 1.4 %.

Party City may not be the only party retailer hit by the helium shortage. In Boston, Itzaparty was reportedly only permitting customers to leave the store with up to six balloons and was not taking any orders for a week, according to WFXT.  Other party stores told the news outlet that they had run out of helium and were not taking any further orders.

Commenting on the helium shortage, Harris remained positive about the outlook for Party City.

"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," he said, according to the New York Post. "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."

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Party City, the go-to place for party supplies, with nearly 900 stores across the U.S. and Canada has taken a massive hit from the global helium shortage.
helium, shortage, party city stores
336
2019-23-10
Friday, 10 May 2019 01:23 PM
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