This story is free to read.

As some chains close stores, Chattanooga experts say retail remains strong

Staff Photo by David Floyd / Party City operates 700 stores nationwide, including one, seen Jan. 2, 2025, at the Oak Park Town Center off Highway 153. The company recently announced it's closing all its locations. Staff Photo by David Floyd / Party City operates 700 stores nationwide, including one, seen Jan. 2, 2025, at the Oak Park Town Center off Highway 153. The company recently announced it's closing all its locations.

By David Floyd January 2, 2025 5 min read

Days before Christmas, a nationwide seller of Santa hats, ugly sweaters, noisemakers, candy and other holiday goods announced it would permanently close hundreds of stores in the coming weeks.

Party City, which has stores at the Oak Park Town Center in Hixson and another off Hamilton Parkway Boulevard in Chattanooga, pointed to inflation as a factor behind the decision. It’s offering discounts of up to 50% on merchandise as it prepares to shut down more than 700 locations.

“Like many retailers, we’ve been operating in an immensely challenging environment with inflationary pressures on both costs and consumer spending, and while we did everything we could to navigate these headwinds, our very best efforts were ultimately not enough to overcome these challenges,” the company said in a letter posted on its website.

Citing data from industry analyst Coresight Research, CBS News reported U.S. retailers announced more than 7,100 store closures from January to November 2024, a 69% increase from the same time in 2023.