Party City has hired Peter Smith as Chief Operating Officer to help the retailer optimize its supply chain and cut costs as it navigates economic uncertainty. The company has promoted EVP and Chief Commercial Officer Sean Thompson to the role of President and Chief Commercial Officer, adding marketing and ecommerce roles to his existing responsibilities.
Smith brings more than 25 years of supply chain experience to the role, most recently as EVP, Global Supply Chain at Carter’s. He also has held leadership positions at VF Corporation, the parent company of Vans, and London Fog.
Party City is targeting $30 million in annualized cost reductions starting in fiscal 2023 to offset inflationary pressure. Revamping its supply chain operations will be a key part of this strategy, as well as finding savings in store efficiencies, marketing expenses and information technology contracts. The retailer also has cut its corporate workforce by 19% through the elimination of 73 existing roles and 87 open positions that will not be backfilled.
“We’re continuing to evaluate strategic price increases to offset cost increases,” said Brad Weston, President and CEO of Party City on a call with investors. “This intensified focus includes streamlining our organization, implementing new ways of driving synergy across our businesses with updated processes and systems, more robust and integrated inventory management capabilities, greater supply chain visibility and efficiencies and enhanced IT capabilities that, combined, all significantly expand our ability to become more demand-driven while simultaneously becoming more efficient in reducing SG&A expenses.”