Canadian Tire wants to appeal to a younger audience. The Toronto-based company recently purchased 65 Party City stores across Canada. The Canadian Tire Party City store buyout will supposedly help the retail chain connect with various consumer groups, including millennials. The company purchased the stores for a cool $174.4 million in cash.
The Canadian retailer claims the chain will become the number 1 party supply destination for all consumers solidifying Canadian Tire as “Canada’s Fun Store,” their press release states.
"Strengthening our marketplace is at the heart of our growth strategy, and we are excited to welcome Party City into the Canadian Tire family of companies," CTC executive vice-president Allan MacDonald said to BNN Bloomberg.
"We believe the Party City-Canadian Tire partnership will drive more trips, improve our offers in micro seasons, strengthen our connection with millennials and Canadian families and expand the appeal of Triangle Rewards,” he added.
However, that doesn't mean that Party City as we know it is about to change forever.
According to Bloomberg, Canadian Tire plans to open more standalone Party City stores while also selling its products. The new products will be available across 500 retail stores as well as online.
Canadian Tire predicts that it will double Party City's annual sales in Canada to $280 million by 2021. The deal was first announced after the popular outdoor goods supplier revealed its second-quarter results.
According to CP24, Canadian Tire Corp operates multiple retail banners including Canadian Tire, SportChek, Mark's and Helly Hansen. It hopes the acquisition of Party City's Canadian stores will give it a high-margin retail category.