Party City store closures started a war to win over its customers. Two very different retailers are on the front lines
Michaels is expanding its party supply and celebration offerings. In September 2025, the arts and crafts retailer introduced The Party Shop at Michaels, an in-store shopping experience that brought party supplies, balloons, and other celebration essentials to its shelves. This year, its product selection will grow even further. In a May 13 press release, Michaels announced it is expanding its in-store party supply assortment and introducing new in-store experiences, with plans to add nearly 600 new products to its shelves throughout 2026. Michaels isn’t the only unexpected retailer with a party supply aisle. Last month, Staples announced it was getting into the party business with help from Party City. The office supply retailer shared plans to add Party City at Staples shop-in-shops to more than 700 of its stores. Party City filed for bankruptcy for a second time in December 2024 and announced it would close all of its stores. Its departure left many shoppers without a go-to retailer for party supplies and balloons. In the wake of its store closure, retailers like Staples and Michaels are filling the gap. Michaels offers new ways to prepare for your next party In the past year, Michaels has expanded its party supplies and balloon offerings to over 4,500 products. The retailer isn’t slowing down—it plans to add around 600 new products by the end of 2026, bringing even more celebration finds to shelves. New products include piñatas, expanded licensed essentials featuring characters like Hello Kitty and Bluey, and year-round entertaining products. Michaels is also introducing new in-store experiences. Beginning this month, the craft retailer is rolling out the following in-store DIY customization bars across North America: The Favor Bar: Mix and match items to build custom party favors. The Candy Bar: Fill favor bags or create dessert displays with an assortment of sweets. The DIY Banner Bar: Create personalized felt banners with interchangeable numbers, l