Michaels expands in-store party offerings with new “Party Shop” experiences, while Staples brings Party City shop-in-shops after Party City closures.
A party aisle is becoming a competitive battleground as retailers race to win back customers left behind after Party City’s store shutdowns.. In the middle of that shift. Michaels is rolling out a larger in-store party experience—using new product categories and customization stations—while Staples is preparing to place Party City-branded shop-in-shops inside its stores.
Michaels’ move began with a strategy aimed at turning party planning into an in-store destination.. In September 2025. the arts and crafts retailer introduced “The Party Shop at Michaels. ” an in-store shopping experience designed to bring together party supplies. balloons. and other celebration essentials under one roof.
Building on that concept, Michaels said it plans to expand its in-store party supply assortment and add additional in-store experiences.. In a May 13 press release. the retailer announced it expects to introduce nearly 600 new products to its shelves throughout 2026. positioning the party aisle not just as seasonal inventory. but as a growing category inside the store.
The company is also broadening its party selection beyond basic supplies.. Over the past year. Michaels expanded its party supplies and balloon offerings to more than 4. 500 products. and it is planning to add around 600 more by the end of 2026.. The new lineup includes items such as piñatas. expanded licensed celebration essentials featuring characters like Hello Kitty and Bluey. and year-round entertaining products.
Michaels is pairing its product expansion with hands-on in-store services.. Beginning this month. the craft retailer plans to roll out DIY customization bars across North America. including “The Favor Bar. ” where shoppers can mix and match items to build custom party favors; “The Candy Bar. ” which allows customers to fill favor bags or create dessert displays with an assortment of sweets; and “The DIY Banner Bar. ” enabling personalized felt banners with interchangeable numbers. letters. and icons.
For last-minute needs, Michaels is also adding a gift wrap and accessories assortment.. The retailer said it will stock gift wrap and bags. bows. tags. and tissue paper. with a mix-and-match option for five items for $5.. The message behind the expansion is clear: Michaels wants shoppers to start planning inside the store rather than treating party shopping as a quick. end-of-aisle pickup.
This urgency comes in the wake of Party City’s exit from retail shelves.. Party City filed for bankruptcy for a second time in December 2024 and announced it would close all stores. leaving many shoppers without a go-to destination for party supplies and balloons.. With that gap created, competitors are stepping in to capture demand where the brand once operated.
Staples is taking a similar approach, but with a different business model.. Last month. the office supply retailer announced it would enter the party business with help from Party City. planning to add Party City at Staples shop-in-shops to more than 700 of its stores.. For Staples. the partnership is a way to bring party-focused shopping experiences to a wider customer base without building new standalone store formats.
Michaels’ “Party Shop” is part of a broader trend where retailers rely on shop-in-shops to grow offerings without expanding their physical footprint.. The craft retailer said it already offers other in-store concepts. including “The Knit & Sew Shop.” That shop features sewing and crafting essentials such as yarn. thread. and fabric. and it carries both Joann and Michaels-branded product lines.
This approach also ties into recent corporate change in the arts and fabrics space.. In 2025. Joann Inc went bankrupt and closed all remaining stores. but Michaels later acquired Joann’s intellectual property and private label brands in June 2025.. Bringing those brands into in-store shop formats like “The Knit & Sew Shop” helps Michaels keep demand alive for categories that might otherwise have lost major retail coverage.
For the market, the underlying storyline is a reshuffling of retail geography.. Party City’s closures removed a dedicated party-focused footprint. and the response from Michaels and Staples suggests that party supplies are becoming less dependent on a single specialist chain.. Instead. the category is migrating into the broader retail ecosystems of crafts and office supply stores—where traffic patterns. merchandising space. and cross-category buying can be leveraged.
Both Michaels and Staples are privately held, which may shape how quickly they can adjust product plans and store offerings.. The Michaels Companies was taken private in 2021 by Apollo Global Management, while Staples Inc was bought in 2017 by Sycamore Partners.. With both companies operating outside the day-to-day pressure of public market reporting. their ability to iterate on in-store concepts—whether customization bars or shop-in-shops—could become a key competitive advantage as the party season approaches.
At Michaels, the strategic goal is to make celebration shopping a more immersive experience.. In a statement. Michaels CEO David Boone said the retailer believes the joy of celebrating should begin the moment customers start planning.. For shoppers. that may translate into more choice inside familiar stores—and a party aisle that keeps expanding even after Party City’s shelves went dark for good.
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