Michaels expands party assortment and adds more in-store experiences

Sponsored by

The customer’s always journeying: Retail, like life, is about the journey—the customer journey, that is. In our State of Stores report, we dive into how retailers need to use every tool in their kit (including the POS) to meet the ever-expanding expectations of today’s shoppers. Read it here.

After Party City went bankrupt and shuttered its stores in 2024, Michaels started picking up the slack with more party supplies. Two years later, that process continues with more merchandise and in-store experiences at its party-focused shop-in-shop.

The arts and crafts store is adding 600 new products in 2026, marking a 60% increase in its party assortment. That includes an expanded selection of balloons and decorations, as well as new categories such as pinatas.

• More of these products will also have licensed themes from popular properties such as Bluey, Hello Kitty, and Stitch.

The other side of the build-out is in-store experiences, which Michaels CEO David Boone told Retail Brew last year was an increasingly important part of its business. Michaels is adding what it’s calling “Customization Bars.” These DIY areas will allow customers to personalize their own party favors, dessert displays, and banners.

Crafty deals: The expansion of its party business coincides with Michaels’ ongoing efforts to increase the affordability of its merchandise, and its latest announcement also came with more promises of discounts and price cuts.

The company is now offering a deal where customers can mix and match five pieces of packaging such as gift wrap, bows, and tissue paper for $5. The deal comes at the same time as Michaels is lowering the price for in-store birthday parties and reducing prices on hundreds of items across the store.

Michaels’ party business is just one facet of the store’s ongoing reinvention. It also continues to expand its fabric selection after purchasing the intellectual property of JOANN Fabrics, which went out of business in 2025.