Party City Holdco Inc. (NYSE: PRTY) is making a somewhat unexpected partnership to expand into the e-commerce space. The company announced an e-commerce fulfillment relationship with Staples Inc. (NASDAQ: SPLS). As per the agreement, Staples will list Party City’s products on its websites.
The company will utilize its facility in Naperville, Ill., to provide “white label” fulfillment for items from its product portfolio that are displayed on e-commerce websites operated by Staples.
Jim Harrison, CEO of Party City, commented on the agreement:
We are delighted that we have entered into this e-commerce fulfillment relationship with Staples. We look forward to adding other marquee retailers this year as partners in this growth avenue for our company.
Party City is the leading party goods company by revenue in North America and, it is believed to be, the largest vertically integrated supplier of decorated party goods globally by revenue. The company is a popular one-stop shopping destination for party supplies, balloons and costumes.
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So far in 2016, Party City has underperformed the broad markets, with the stock down 31% year to date.
Shares of Party City were trading down 0.4% at $8.83 on Friday, with a consensus analyst price target of $17.38 and a 52-week trading range of $8.54 to $22.60.
Staples shares were trading up 0.8% at $8.81, within a 52-week range of $8.29 to $17.27. The consensus price target is $13.69.
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