Sales Increases Exceed Sales Decreases Although Party and Paper Magazine didn’t provide total 2015 industry revenues in its 2015 retailers’ survey results, 72% of the respondents said sales increased during 2015, compared to 2014, when 60% said sales were greater than 2013. In addition, 28% of respondents said they experienced a decrease in 2015 sales, compared to 40% who said their 2014 sales declined. The average sales increase for 2015 was less than 2014, or 6% and 9%, respectively, but the average decrease for 2015 was less than 2014, or 8% and 10%, respectively.

Winning Strategies Although party supplies continued to be stores’ primary business during 2015, their share of total business declined from 48% for 2014 to 42% for 2015. Balloons and Halloween/costumes’ shares also declined, but card/gift/stationery and bridal increased. In the special services category, balloon delivery’s share declined from 70% to 67% and party planning declined substantially, from 48% to 35%. Invitation books and imprinting in store increased significantly, with imprinting almost doubled to 35%. Of the stores participating in the survey, the same percentage, 32%, planned to expand during 2015 as from the 2014 survey; however, those planning to renovate increased significantly from 20% during 2014 to 32% for 2015.

Paper Stories Party City is the primary national party supplies retailer, with a total of 913 stores as of June 30, 2016, or a net increase of 11 during the previous 12 months. Total Q2 2016 revenues were $519 million, a 4.8% increase, following a minor decrease for Q1 2016. According to the International Licensing Industry Merchandisers’ Association, retail sales of licensed products increased 4.2% during 2015, to $251.7 billion; however, Party & Paper Retail’s 2016 online poll found mediocre demand for politically themed items. The California Appropriations Committee of the California Assembly voted against a bill to ban the distribution of foil balloons by 2018, resulting in no vote on the bill in the assembly.

Bridal Buying Binge According to The Knot 2015 Real Wedding Study, the national average spent in the florist/décor category increased from $2,141 for 2014 to an estimated $2,300 for 2015. The average spent on invitations also increased from $439 to $445. The Wedding Report Q1 2016 found that 28.8% of couples who would hire a calligrapher would want he or she to customize their invitations and 35.2% of couples said in The Wedding Report Q2 2016 that they would prefer monograms on their invitations. Research from the Wedding Report revealed that the cost of reception menus increased the most from 2014 to 2015, or +5.1%, followed by ceremony programs, +4.3%. The cost of a guest book, table name and escort/place cards and thank you cards remained the same.

Store Owner Optimism Another good sign for party supplies stores is that 50% of stores said their sales volume was less than $250,000, compared to 60% in Party and Paper Magazine’s 2014 retail store survey. Maybe more significantly, all the larger sales volume categories increased for 2015, compared to 2014: $250K–$749K, 28% and 21%; $750K–$1.5 million, 9% and 7%; and more than $1.5 million, 13% and 9%, respectively. Not surprisingly, 96% of party supplies stores said they marketed their businesses on Facebook; followed by Twitter, 34%; LinkedIn, 21%; and none, 7%.

Advertising Strategies Most party supplies stores won’t have a sufficient ad budget for much TV, but they can benefit from ads on your station’s Website, especially next to stories about the major annual holidays and wedding trends. Party supplies stores may want to create discounted school party packages for birthdays, holidays, etc., with an appropriate amount of decorations, hats, etc. for an average local school class, and market the packages to teachers and parents through PTAs. Suggest that party supplies stores approach florists and party rental companies (tables, chairs, etc.) to co-promote their products and services, with discounted packages or coupons distributed at each store for the other stores.

New Media Strategies Party supplies stores may want to use Pinterest, as many attendees at the February 2016 Paper First Affiliates’ annual conference said customers asked for specific costumes and balloon ensemble ideas and party themes they found on the social media platform. Use social media to ask customers and consumers to share their best party ideas – theme, decorations, refreshments, costumes, games, etc. Invite everyone to vote for the best ideas, with a grand prize for the winner and digital coupons for all participants. Consumers are more likely to shop at a local store that is involved in the community. Party supplies stores can offer to collect paper and plastic from weddings and other major celebrations and events for recycling, and then post updates about how much they recycled.