Surprising Party Store Growth in Tough Times, Insider Explains Why Some Stores Flourish
Some party stores may have seen increased business due to a shift in celebratory habits according to an industry insider, Discount Retail Store Services reports.
Las Vegas, NV (PRWEB) October 29, 2012
Party Stores have been a staple of shopping centers and malls for years, and one can usually be found in just about every community, stocking items essential for parties like paper plates, plastic cups, plastic forks and spoons, napkins, candles for cakes, balloons, and many more novelty items. The busiest times are generally graduation and Halloween through the New Year, but year-round individuals are celebrating one occasion or another. As with most businesses, during the recession the industry as a whole took a hit.
Less disposable income and more anxiety about the economy have lead to many individuals toning down their party spending. Establishments long catering to birthday parties and other celebrations like Chuck-E-Cheese and similar venues have been hit hardest and party rentals have been decreasing, according to IBISWorld, party supply rental's fell an average of 0.3% through 2011. Demand in this specific area has been slowly recovering since 2010 however, according to the same source.
Bob Kelliher, General Manager of Discount Party Store Developers, the largest non-franchise independent developer of party stores in North America, believes that while pricier “party” options such as those offered by party rental companies and restaurants and other venues that cater specifically to parties have had their share of problems, it does not necessarily mean that people are “partying” any less, “It's not that people are less inclined to throw a birthday party, or to celebrate the Holidays or special occasions, the difference is really how they do it. Instead of going out they stay at home. Instead of renting expensive props and party supplies, they make do with what is in the home and seek out a discount party store to get the essentials like paper plates, balloons, and other items. They often can find party supplies for themed events at a lower price as well. They ask themselves for example ‘why spend a few hundred dollars taking my daughter and her 10 friends out for pizza when I can have pizza delivered and buy all the supplies I need at the local party store for a fraction of the price?' That's where certain party stores have an advantage. Not all of them though.”
Another major factor contributing to the success of some party stores is pricing according to Kelliher, “You have to be able to sell items for a lot less than the big box brands, but you still need to stock stores with quality items. Low quality party items are a downer. It is a celebration after all. The only way to do this is to decrease overhead which means things like franchise fees, royalties, overpriced suppliers or a lack of buying power to get the needed wholesale discounts from suppliers, are factors that are going to seriously hamper a store's ability to make a profit, even to survive in today's economy. Get rid of those costs and owners often find they can do well no matter the economy while also offering excellent deals to the community. It's a win-win in most cases.”
Discount Party Store Developers specializes in party store development for independent owners, without franchise fees or ongoing royalties. Their services include finance assistance with credit repair when needed, site location, business training, wholesale network of suppliers, complete store build-out, and ongoing support at no additional cost.
Discount Retail Store Services is a business development company which helps entrepreneurs start a business using one of their business models including party stores, dollar stores, clothing stores, mail box stores, teen stores, and fitness centers. Get upcoming industry news for entrepreneurs on their Facebook Page.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/10/prweb10053827.htmView Comments and Join the Discussion!