How Party City is a Lot More Than Just Its Retail Stores
As some retailers are shuttering stores, party supply company Party City (PRTY) - Get Report is planning a big expansion over the next few years, according to Jim Harrison, the chief executive officer. 'We currently have 900 stores, of which about 170 are franchise. We believe there is an opportunity to grow our store base in the U.S. and Canada by another 300 to 350,' said Harrison. Party City is also expanding in Mexico and looking at other opportunities around the globe. While Party City faces competition from Amazon (AMZN) - Get Report , discount stores, and others, the company isn't a pure play retailer and is using other lines of business to generate revenue, according to Harrison. 'One of the beauties of our model is we really have three pillars. We're a retailer, manufacturer, and wholesaler,' he explained. 'I'll give you an example that seems totally off the wall. We manufacture our own paper plates in Louisville, Kentucky. In addition to manufacturing our own paper plates and paper plates for stores around the world, we also manufacture 350 million chicken pot pie bowls a year. That's an incremental form of revenue that helps us build our sales outside of the party specialty channel.' TheStreet's Rhonda Schaffler reports from Party City's Headquarters in Elmsford, New York.
