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Party City begins 80 store expansion – in Mexico

BY Mike Troy

The first Party City location has opened in Mexico and with the help of strategic franchise partner Grupo Oprimax a total of 80 locations are planned.

Party City parent company, Party City Holdco Inc., currently operates about 900 stores under the banners of Party City and Halloween City, but is intent on expanding its global retail presence. Its partner in that endeavor, Grupo Oprimax, is said to have extensive experience in developing and managing leading retail brands throughout Mexico and possesses a deep understanding of the Mexican consumer. Party City already distributes party supplies to department and specialty retail stores throughout Mexico.

Party City’s first store in Mexico is in the city of Metepec in the Pabellón Metepec shopping center. A second location is set to open June 20 in the city of Interlomas, located just west of Mexico City. The stores are designed much like their U.S. counterparts in terms of appearance and product presentation.

“I am very excited to bring our Party City brand into Mexico and this first store is only the beginning of our long-term strategy to grow our presence in Mexico and Latin America over the coming years,” said Jim Harrison, CEO of Party City Holdco Inc. “We have a strong reception from Hispanic consumers and Mexico is a prime market for our product offering given the country’s festive culture and affinity for throwing large parties. Our wholesale business will begin by supplying approximately 50% of the products sold in these franchise locations, which should grow over time.”

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How Competition in Consumer-Facing Technology Threatens the Stability of Retail

BY Ronen Lazar

Competition in providing the most innovative, unique, and up-to-date services and features to consumers is escalating with the rise and expansion of omnicommerce, a strategy that delivers a seamless customer experience through all available shopping channels. Brands are building in-house development teams or partnering with start-ups and other companies to extend their reach while catering to their customers’ demands of convenience, personalization, and on-trend technology.

The resulting features range from product locating mobile apps such as Target’s Cartwheel in-store deal-finding extension, digital and virtual shopping experiences such as Ikea’s augmented reality catalogue and StubHub’s VR 3-D ticket seat preview, and shipping and return processes such as Amazon’s two-hour shipping and Zappos' free, simple return option.

Each company is trying to out-do its competition by innovating faster and being the most on- trend, not just with retail but with advertising as well. For example, Burberry partnered with Snapchat, arguably one of the most highly used social media messaging applications, to be the first brand to create a 24-hour “Discover” channel promoting their new men’s fragrance.

Their campaign is not only a “first,” but it also addresses and incorporates everything their target market asks for and expects. It can be argued that they are “winning” in this brand competition – but only until someone else comes up with the next trendy idea that makes new news tomorrow.

And more and more companies are joining in this competition as omnicommerce becomes the norm. However, these new features are offering services that are disrupting the way the retail industry has functioned up until now.

The new technology creates serious demands on time, data flow and storage, all while requiring the accuracy and flexibility to handle technology updates and changes to the infrastructure. For example, Nordstrom allows customers to find products in store, buy online, pick-up in store, return in store or online, and a multitude of other forms of product discovery and movement.

Yet this flexibility offered to the customer requires a backend infrastructure that can handle the complexities of product tracking, inventory count, and fulfillment processing. Traditional processes such as the straight “ship from distribution center to customer” and “buy in store, return in store” are now being replaced with more complex inventory movement systems and customer tracking abilities.

The new omnicommerce features also provide highly personalized experiences to customers and rely on tracking customer behaviors and real-time data to create unique customer profiles. Easy and error-free communication from system to system, backend to front, is required to achieve this goal, especially in regards to stock levels, shipping and fulfillment, and order history, all important parts of the supply chain.

And while some innovators have built technology to robustly and efficiently handle these changes, not all backend infrastructures are up to speed. This is true not only for specific brands but across the retail industry as a whole. Given that supply chain and brand functioning rely on the “well-oiled machine,” if one part breaks, the whole retail process is at risk.

Some companies have patched up their backend infrastructure to integrate with the new frontend technology, but most existing backend systems cannot be built out in a way that allows them to fully perform at the level necessary to deliver to customer expectations. For now the patches work well enough, and most companies are content to stay focused in the present rather than to look forward to what will happen when the volume of commerce and their customer base expands beyond the capabilities of their backend systems.

Not all retailers and brands are equipped to handle the promises being made and the expectations being created by this emerging omnichannel technology. Not only is the physical functionality of retail (the supply chain and product movement) being threatened, but also the customer satisfaction promise is as well, as the expectations and demands are set high and will only increase.

Creating backend systems that can fully support and adapt to new and ever-changing frontend technology is now the necessary next step to long-term customer satisfaction and overall business success.



Ronen Lazar is the co-founder and CEO of INTURN, a global B2B online software platform innovating the way brands and retailers buy and sell excess inventory.

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Saks opens 100th Off 5th location; affirms urban strategy

BY Mike Troy

The opening of the newest Saks Fifth Avenue Off 5th location near downtown Chicago is a big deal literally and figuratively.

The newest Off 5th is located in the NEWCITY development at Lincoln Park on the northern fringe of downtown Chicago at 1457 Halsted Street at the intersection of North Clybourn Avenue. The store is the company’s 100th Off 5th location in North American, its seventh in Illinois and the second in downtown Chicago following the April 14 opening of the first location as 6 S. State Street.

The other downtown location measured 23,500 sq. ft. whereas the new store is 40,000 sq. ft. and seen reinforcing the retailer’s strategy to bring more Off 5th stores to metropolitan areas.

“The opening of our newest store at Lincoln Park is a significant milestone for Saks Off 5th. Not only is this the second store to debut in downtown Chicago, but this opening also marks our 100thstore location in North America,” said Jonathan Greller, president of Saks Off 5th and Gilt. “This opening reinforces our strategy to bring more Saks OFF 5th stores to downtown metropolitan areas, and we are proud to continue investing in vibrant cities like Chicago.”

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