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A worldwide shortage of helium has the effect of preventing the Party City retailer from getting fresh air. The company said this week that it had not been able to meet customer demand for helium-filled balloons, which resulted in lower sales.
A factor underlying the shortage is that about three quarters of the world's helium comes from three sources: the Ras Laffan Industrial Estate in Qatar, ExxonMobil in Wyoming, and the United States National Park. helium in Texas, according to Gasworld.com, a sector publication.
Due to limited sources of helium, any interruption of supply has a significant impact, according to Party City.
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"The helium supply has always been a little bit in the air (pun intended)," explained the retailer in a notice addressed to his customers. "Due to this global shortage of helium, the execution of balloon orders may be affected in your store."
Party City closing 45 stores
Due to the shortage of helium, the company's total sales have dropped by 1.4% in the first quarter of this year compared to the same period of the previous year. Party City ended the quarter with a debt of nearly $ 2 billion. The party's supplier has closed 45 of the 870 stores this year, accelerating the pace of closures that have risen to 10 to 15 in recent years, said Thursday the New Jersey company.
The company has found a new source of helium that should allow it to supply more gas, starting this summer and for two and a half years, said James Harrison, CEO of Party City, in a statement.
"While the average cost of helium is increasing compared to previous years, we have managed to put in place selective price increases, which will help mitigate these higher costs of helium. ", he said Thursday during a conference call with Wall Street analysts.
Meanwhile, Party City suggests consumers organize parties that instead create "a balloon bow or a balloon wall with latex balloons and aluminum," which do not require helium, or the use of "a little adhesive tape and creativity". In addition to sounding your voice like a chipmunk and filling party balloons, helium is used in the manufacture of many electronic devices, medical devices and rockets.
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