Walgreens' Party Supply Power Play | Fast Five Shorts

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

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

Ann.

Yeah, and online.

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

Not nine times like Ferris Bueller, but five times.

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

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

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

Can you believe this?

All right.

What a steal.

I know, right?

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

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.

All right, all right, here it is.

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

Physical retail.

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

Yes, I do think so.

And not all retail players.

Let me make note of that.

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.

I need some kind of.

I have had a plate emergency.

Yes.

You know what's open on Christmas?

Not a hell of a lot.

Not a hell of a lot.

But you know what is open?

Walgreens 24 hours.

Walgreens, 24 hours stores.

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

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.

They're going to be open.

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

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

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.

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

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

We were in Paris this week.

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

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

And the French know how to party.

That shouldn't be a surprise.

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

This makes sense.

Birthday candles.

So you're all in on this move?

I am 100% in.

I think this is so smart.

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.

Okay, okay, okay.

And.

Well, I'm gonna.

I'm gonna respectfully, respectfully agree with you.

I'm gonna agree with you on this one.

Yes.

You had me worried.

Yeah.

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

I'm kind of surmising that.

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

I looked it up.

It was $2 billion.

Yeah.

Consistently.

That's a lot.

That's a lot of change.

That's a lot of party supply.

Those helium balloons are not cheap.

Have you bought one?

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

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

Yes.

And they are.

Yeah, they are.

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.

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

Right.

For the floor pad.

Right?

Yep.

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

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

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

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

Yeah.

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

Sure.

You can get your passport photos.

You can get real photos developed.

Pick up packages.

Packages.

Pick up packages.

So why can't you put helium behind there?

It's totally easy.

Right.

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

Right.

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

Right.

No.

Shout out to them.

Those guys work hard.

Oh, my God.

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

This is why you listen to omnitalk Retail.

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

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

Really?

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

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

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

Yeah.

Now, caveat, of course.

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

That's why I'm going into it.

But I don't think so.

I know her pretty well.

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

So kudos to her for going after and getting it.

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

Tracy.

We're all in.

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

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

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

All right.

I love it.