Michaels Adds 600 Party Products, Custom DIY Bars to Capture Party City Market Share

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5.17.2026

Quick Facts

Michaels is adding 600 new party products in 2026, a 60% increase in its party assortment
The retailer launched three new Customization Bars for DIY party favors, candy displays, and banners
Party supply searches on Michaels.com jumped 155% while balloon searches surged 150% this year

Michaels is expanding its party business with 600 new products and interactive DIY stations as it continues capturing market share from Party City’s closure.

The arts and crafts retailer is adding new categories including piñatas and licensed kids’ party supplies featuring characters like Bluey and Hello Kitty. The expansion brings Michaels’ party assortment to more than 4,500 items across 60-plus themes.

Three new Customization Bars offer hands-on experiences:

The Favor Bar lets customers build custom party favors with beauty items like face masks and lip balm
The Candy Bar provides colorful sweets for designing dessert displays
The DIY Banner Bar offers personalized felt banners with interchangeable letters and icons

The expansion builds on strong consumer demand. Balloon searches on Michaels.com have surged 150% since January, while party supply searches jumped 155%.

CEO David Boone said capturing market share from failed competitors was “job one” when he joined the company. “There was tremendous disruption in the marketplace with the exit of Joann Fabric and the exit of Party City,” Boone said.

Party City filed for bankruptcy and closed its 700 U.S. stores in February 2024, leaving a major gap in the $12 billion party supply market. Michaels has aggressively filled that void through pricing and product expansion.

The company reduced birthday party prices to $149 last year and has seen those events quintuple year over year. Michaels now offers 12 latex balloons for $12 and grab-and-go bundles starting at $24.99.

Events represent the fastest-growing part of Michaels’ business. The company hosted nearly 5,000 parties serving 42,000 kids in 2024. It inflated over 17 million balloons in the past year alone.

Chief Merchandising Officer Stacey Shively said the expansion positions Michaels as “the true one-stop shop” for celebrations. The retailer operates dedicated Party Shop departments launched in September 2024.

Michaels’ third-quarter earnings grew 40% as annual revenue surpassed $6 billion in 2025. Only 50% of consumers know Michaels sells party supplies, up from 20% when it first rolled out the category.