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Walgreens' Party Supply Power Play | Fast Five Shorts
Episode 39920th September 2025 • Omni Talk Retail • Omni Talk Retail
00:00:00 00:05:15

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This segment from the Omni Talk Retail Fast Five, sponsored by the A&M Consumer and Retail Group, Mirakl, Ocampo Capital, Infios, and Quorso, explores Walgreens' strategic move into party supplies following Party City's closure. Chris and Anne analyze the $2 billion market opportunity and why former Party City executive Tracey Koller's merchandising expertise makes this expansion particularly smart.

  • 10:22 – The $2 billion party supply opportunity 
  • 11:17 – Emergency shopping use cases and convenience factor 
  • 13:01 – Tracy Kolder's merchandising background advantage

For the full #fastfive episode head here: https://youtu.be/xSLvyg5Sze4

#walgreens #partysupplies #partycity #convenience #retail




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Transcripts

Speaker A:

Walgreens is dedicating in store space to party supplies and expanding its assortment in the category.

Speaker A:

According to Retail Dive, Walgreens is expanding its party supply lineup in stores and online.

Speaker A:

Ann.

Speaker A:

Yeah, and online.

Speaker A:

The retailer now has dedicated in store space for party supplies with nearly five times more than before.

Speaker A:

Not nine times like Ferris Bueller, but five times.

Speaker A:

Some of the retailers party items are also available for 30 minute pickup or even one hour delivery should you need that helium balloon.

Speaker A:

And yes, because the expanded assortment includes helium balloons, cake toppers, party plates, napkins, banners, foil backdrops and decorative centerpieces.

Speaker A:

And some of some of the items and are starting at $1.99.

Speaker A:

Can you believe this?

Speaker A:

All right.

Speaker B:

What a steal.

Speaker A:

I know, right?

Speaker A:

The move comes after Party City filed for Chapter 11 bankruptcy a second time and then announced the closure of nearly 700 locations.

Speaker A:

And as you can tell by the increased enthusiasm in my voice as I read that headline, this is also the A and M Put yout on the Spot question.

Speaker A:

All right, all right, here it is.

Speaker A:

And I quote, after Party City's Chapter 11 filing and liquidation, is there still enough to go around that physical retail.

Speaker A:

Physical retail.

Speaker A:

Ann needs new players to pick up the slack and introduce these categories, end quote.

Speaker B:

Yes, I do think so.

Speaker B:

And not all retail players.

Speaker B:

Let me make note of that.

Speaker B:

But Chris, have you ever found yourself like on a Christmas morning thinking, I need some things, I need to get plates because we don't have enough plates.

Speaker B:

I need some kind of.

Speaker A:

I have had a plate emergency.

Speaker B:

Yes.

Speaker B:

You know what's open on Christmas?

Speaker A:

Not a hell of a lot.

Speaker B:

Not a hell of a lot.

Speaker B:

But you know what is open?

Speaker A:

Walgreens 24 hours.

Speaker B:

Walgreens, 24 hours stores.

Speaker B:

Which is, I think why is so, so brilliant.

Speaker B:

Not only is this an area where I think people are already going, you already know that if, if it's a, especially in a holiday emergency situation where you need these types of products, Walgreens is available.

Speaker B:

They're going to be open.

Speaker B:

And I also think that this is going to increase the basket for some of those shoppers.

Speaker B:

They're not just going to be going there to get the party supplies.

Speaker B:

They're going to be picking up extra sodas or maybe they're picking up like little toys or candy or something to put in these party bags.

Speaker B:

Like, I think this is a very, very smart, strategic move for Walgreens.

Speaker B:

And even as I've been walking, I was in New York last week.

Speaker B:

We were in Paris this week.

Speaker B:

Even as you walk in these little city Versions of, you know, Carrefour or whatever at Montepri might be.

Speaker B:

They have significant party supply areas and they are wiped out.

Speaker A:

And the French know how to party.

Speaker A:

That shouldn't be a surprise.

Speaker B:

I know, but it's like, everybody needs these products.

Speaker B:

This makes sense.

Speaker B:

Birthday candles.

Speaker A:

So you're all in on this move?

Speaker B:

I am 100% in.

Speaker B:

I think this is so smart.

Speaker B:

And I do think, to answer A and M's question, that this is 100% one retail retailer that should be picking up the slack.

Speaker A:

Okay, okay, okay.

Speaker A:

And.

Speaker A:

Well, I'm gonna.

Speaker A:

I'm gonna respectfully, respectfully agree with you.

Speaker A:

I'm gonna agree with you on this one.

Speaker A:

Yes.

Speaker B:

You had me worried.

Speaker A:

Yeah.

Speaker A:

No, I can tell how A and M's thinking about this based on how they asked that question.

Speaker A:

I'm kind of surmising that.

Speaker A:

But no, I think, you know, first of all, the party city business is nothing to sneeze at.

Speaker A:

I looked it up.

Speaker A:

It was $2 billion.

Speaker B:

Yeah.

Speaker A:

Consistently.

Speaker A:

That's a lot.

Speaker A:

That's a lot of change.

Speaker A:

That's a lot of party supply.

Speaker B:

Those helium balloons are not cheap.

Speaker B:

Have you bought one?

Speaker B:

They're like 12, $15 for like a balloon.

Speaker A:

I try not to buy them as often as possible, to be honest, but I have had to buy them.

Speaker A:

Yes.

Speaker A:

And they are.

Speaker A:

Yeah, they are.

Speaker A:

There's a margin in those helium balloons, you know, but I think for a couple other reasons, I think it's a great addition too.

Speaker A:

So one, I think it's a solid incremental item.

Speaker A:

Right.

Speaker A:

For the floor pad.

Speaker A:

Right?

Speaker B:

Yep.

Speaker A:

And, you know, I go through Walgreens all the time.

Speaker A:

I'm like, there's so much slow moving stuff in here.

Speaker A:

Like, you could dedicate more space to stuff that you need, like on the occasions that you're talking about.

Speaker A:

Then the other thing I thought about too, is they have that whole service counter.

Speaker B:

Yeah.

Speaker A:

Which is an element of a Walgreens experience that not a lot of other retailers have.

Speaker A:

Sure.

Speaker A:

You can get your passport photos.

Speaker A:

You can get real photos developed.

Speaker B:

Pick up packages.

Speaker A:

Packages.

Speaker A:

Pick up packages.

Speaker A:

So why can't you put helium behind there?

Speaker A:

It's totally easy.

Speaker A:

Right.

Speaker B:

And it gives the people something to do when they're bored, you know, just like.

Speaker A:

Right.

Speaker A:

Because the Walgreens employees don't have enough to do.

Speaker A:

Right.

Speaker A:

No.

Speaker A:

Shout out to them.

Speaker A:

Those guys work hard.

Speaker B:

Oh, my God.

Speaker A:

But anyway, the other point I'd make, and this is inside baseball, folks.

Speaker A:

This is why you listen to omnitalk Retail.

Speaker A:

Because we know that the new chief merchant at Walgreens, which was not in most of the headlines.

Speaker A:

I didn't see it once in the headlines, actually.

Speaker B:

Really?

Speaker A:

The new chief merchant for Walgreens is formerly of Party City and formerly a colleague of ours at Target, Tracy Kolder.

Speaker A:

So my hunch is she knows a little something about party supplies and how to tack this opportunity.

Speaker A:

So if anyone's gonna do it, it's probably her.

Speaker B:

Yeah.

Speaker A:

Now, caveat, of course.

Speaker A:

She could be like, okay, maybe I know this category.

Speaker A:

That's why I'm going into it.

Speaker A:

But I don't think so.

Speaker A:

I know her pretty well.

Speaker A:

I think she thinks there's some low hanging fruit here.

Speaker A:

So kudos to her for going after and getting it.

Speaker A:

And it sounds like the use cases like you described are there.

Speaker B:

Tracy.

Speaker B:

We're all in.

Speaker B:

So we'll start buying our helium balloons as soon as they're available at our local blog.

Speaker A:

I reached out to her to see if she's at grocery shop.

Speaker A:

She's not gonna be there, unfortunately, but hopefully, maybe we get somebody else from her team to speak with us.

Speaker B:

All right.

Speaker B:

I love it.

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