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Business
23 October 2025

Party City Toys R Us And Spirit Christmas Return

Major retail brands are making a comeback with smaller store formats and pop-up locations, aiming to recapture holiday shoppers across the U.S. after previous closures.

After years of high-profile closures and retail shakeups, some of America’s most beloved specialty chains are staging remarkable comebacks—just in time for the 2025 holiday season. Shoppers in New Jersey, Kentucky, Louisiana, and beyond are witnessing the return of Party City, Spirit Christmas, and Toys ‘R’ Us, though these brands are reappearing in forms quite different from their heyday. While the scale of their operations is smaller and their strategies more nimble, the nostalgia and excitement surrounding their revivals are palpable.

Party City, once the go-to destination for party supplies, costumes, and seasonal decorations, stunned customers in December 2024 when it shuttered all 800-plus stores as part of a sweeping liquidation. According to 42Freeway, the move was a complete exit from brick-and-mortar retail, with the company’s assets sold to New Amscan PC. For many, it seemed like the end of an era. Yet, less than a year later, Party City is mounting a comeback—albeit on a much smaller scale.

Instead of large standalone stores, Party City is now opening compact “store within a store” sections inside select Staples locations. The Deptford, New Jersey, Staples is one such example, where the Party City buildout will occupy a prominent spot near the front entrance, just to the left of the copy and printer section. The installation, which had not begun as of late October 2025, is expected to involve an overnight transformation, complete with Party City branding and a curated selection of merchandise. “The Party City Elves!” one observer quipped, referencing the hush-hush overnight setup crew.

This partnership isn’t just a matter of swapping out a few shelves. According to 42Freeway, a crew will come in after hours to overhaul the space, giving Party City a distinct identity within the Staples footprint. But don’t expect the cavernous stores of old. The Party City section in Deptford will be around 500 square feet—a dramatic reduction from the 17,000-square-foot location that once operated nearby. The trade-off, of course, is a more focused product assortment, with the essentials for parties and events, but little room for the expansive variety that longtime customers may remember.

The Deptford Staples isn’t alone. Similar Party City installations are underway or planned in Marlton, Moorestown, and Cherry Hill, New Jersey, as of October 2025. While official details about the partnership remain scarce—there’s been no major press release from Staples or Party City—local reporting and social media have confirmed the trend. According to Neil at A View From Evesham, readers have spotted “Coming Soon” signs and in-progress conversions at multiple locations, fueling anticipation among party planners and parents alike.

Party City’s pivot echoes a broader trend in American retail: the resurrection of iconic brands through smaller, more flexible footprints and strategic partnerships. Toys ‘R’ Us, which filed for Chapter 11 bankruptcy in 2017 and closed over 700 stores by 2018, is another example. The company has struggled through several failed comebacks under different ownerships, but this year, it’s trying something new. According to USA Today, Toys ‘R’ Us announced on October 16, 2025, that it would open more than 30 locations for the 2025 winter holiday season, including eight new permanent stores and over 20 temporary “pop-up” holiday shops.

One such pop-up will appear in Metairie, Louisiana, at the Lakeside Shopping Center on Veterans Memorial Boulevard. While this isn’t a permanent return to the Bayou State—Toys ‘R’ Us has said it won’t open a permanent location in Louisiana for now—it signals a willingness to test the waters and reconnect with customers where demand is strongest. More locations are expected to open throughout the rest of 2025, as the company seeks to regain its foothold in the American toy market.

Toys ‘R’ Us’s approach is both bold and cautious. By opening a mix of permanent and temporary stores, the brand can capitalize on holiday shopping surges without taking on the risk of large, year-round leases. It’s a model that allows for experimentation—and, if the response is strong, the possibility of more permanent expansion down the line. As Presley Bo Tyler reported for the Louisiana Deep South Connect Team at Gannett/USA Today, the company’s comeback is being closely watched by industry analysts and nostalgic shoppers alike.

Another seasonal retailer making a splash this year is Spirit Christmas, owned by Spencer Gifts. Known primarily for its Spirit Halloween stores, Spencer Gifts is expanding its Christmas-themed concept in a big way. After launching eight Spirit Christmas locations in the Northeast in 2024, the company is nearly quadrupling its presence in 2025, with 30 stores across 12 states in the Northeast and Great Lakes regions. This expansion includes Connecticut, Delaware, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, and Pennsylvania.

The flagship Spirit Christmas store opened in Mays Landing, New Jersey, on October 17, 2025, according to a Spencer Gifts spokesperson speaking to USA Today. Many of the new stores are taking over former Spirit Halloween locations, with all expected to open by early November. In Lexington, Kentucky, a new Spirit Christmas store will open in early November at 1980 Pavilion Way, inside a former Big Lots. The company hasn’t announced the exact opening date, but customers can check the Spirit Christmas website for updates.

Spirit Christmas is also offering something a little extra this year: photo opportunities with Santa Claus at select locations. These experiences will begin on November 21, 2025, with set weekend hours—Fridays from 3 to 7 p.m., Saturdays from 11 a.m. to 7 p.m., and Sundays from noon to 6 p.m., all local times. It’s a move that blends retail with experiential events, aiming to draw families looking for more than just shopping.

What’s driving this wave of retail revivals? In part, it’s nostalgia—parents who grew up shopping at Toys ‘R’ Us or Party City want to share those experiences with their own children. But there’s also a practical side: these brands are leveraging smaller footprints and partnerships to reduce costs and test new markets, all while capitalizing on the seasonal demand that defines the last quarter of the year.

Of course, this new era comes with trade-offs. The days of sprawling, single-brand superstores may be over, at least for now. Instead, customers will find curated selections, pop-up experiences, and hybrid spaces where brands share real estate and overhead. It’s not the retail landscape of the past, but it’s one that may prove more resilient—and more responsive to the changing habits of American shoppers.

For now, the return of Party City, Toys ‘R’ Us, and Spirit Christmas is a welcome sign of life in a sector that’s faced more than its share of challenges. Whether these comebacks will stick remains to be seen, but for families planning holiday parties, shopping sprees, or photos with Santa, the magic of the season just got a little brighter.