Party City has decided to start selling on Amazon.
More and more brick-and-mortar retailers are beginning to realize that partnering with the e-commerce jungle is both practical and inevitable to their success.
The company announced on Thursday that they’ll be selling Halloween costumers on the site.
It will be the first time ever that Party City has looked outside its 900 physical locations and website for opportunities to sell.
Depending on how the Halloween move goes, you’ll likely see more merchandising from Party City on Amazon as the months go by. The company released a statement saying that if all goes well, the e-commerce marketplace will also be selling their Christmas and New Year’s inventory.
Party City’s CEO James Harrison explained in a statement that the program allows for an “additional channel of distribution.”
It makes sense that Party City is trying to find new ways to bolster their online sales. Their quarterly results showed a mere 0.1% increase in comparable sales. Clearly, it’s time to find new avenues for growth. And if you’re going to partner with anyone, Amazon is the way to go. They’ve currently got 100 million Amazon Prime members – and most of those people live in the U.S.
Besides Party City, other Retailers are Partnering with Amazon
They’re not the only retailer who is coming to terms with the fact that joining the ranks of Amazon is a potential sink-or-swim situation for their business. Best Buy is partnering with Amazon by selling their store’s smart home products in their stores. Kohl’s is also selling their inventory, and is testing out handling the online marketplace’s returns.
Some estimates show that Amazon’s marketplaces and direct sales make up half of the e-commerce in the United States. So now not only do retailers have to consider the fact that Amazon could steal their sales, they also have to consider that avoiding Amazon could cost them serious online growth.
Halloween is Party City’s biggest holiday. And major retailers like Target and Walmart are making moves to expand their own trick-or-treat territory. It’s a largely lucrative occasion for retailers across the United States, so it makes sense that these businesses would find new ways to push pumpkins, costumes, and candy. According to a survey conducted by the National Retail Federation, Americans spent a record $9.1 billion on Halloween merchandise in 2017.
Data Source: fortune.com