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September 15, 2025
Will Consumers Look To Party With Walgreens?
Noting that celebrating a wider variety of occasions is on the rise, Walgreens announced a nationwide launch of an expanded party supply assortment.
In stores, Walgreens is adding a dedicated space featuring nearly five times more party products than before, including foil and helium balloons under cartoon favorites, metallic numbers, stars, baby bottles, dinosaurs, mermaids, as well as those common “Happy Birthday” and “Congrats” sayings.
Party staples such as birthday candles, party plates and napkins, as well as festive accessories like an “It’s My Birthday” sash, cake toppers, banners, foil backdrops, and decorative centerpieces are available.
Walgreens said, “With approximately 78% of the U.S. population living within five miles of a Walgreens store, party prep can now be a piece of cake.”
Michael’s similarly, in March, expanded its offerings of balloons, party supplies, and in-store birthday parties following the liquidation of Party City.
Walgreens Points To Increased Consumer Interest in ‘Just Because’ Parties
However, Walgreens called out research from GWI and Pinterest from 2023 showing that more people are holding celebrations “just because” coming out of the pandemic. According to the study, nearly half of consumers are celebrating less traditional occasions, like TV shows and movies, sports, social causes, and friendships (e.g. Galentine’s Day) — in addition to milestones such as birthdays and weddings, baby showers, retirement parties, national holidays, and religious occasions.
Pinterest postings at the time of the study showed a high interest in themed parties, including “Color theme party ideas for adults” and “60’s theme party ideas 60th birthday.” Evite in 2024 saw a 5% increase in overall celebrations amid a wider range of occasions, including for divorces, paying off debt, breast reductions, and vasectomies.
“Global events — from pandemics and protests to cost of living crises — have redrawn celebration boundaries,” said Jason Mander, GWI chief insight officer, via the study. “Celebrations don’t have to be big or involve large groups. They don’t have to be perfect or traditional. They might not even need a reason. There’s an evolution taking place in terms of what we celebrate, how we choose to do it, and with whom we want to share the moment.”
Marty Esarte — Walgreens’ group vice president and general merchandise manager of confections, celebrations and seasonal — noted that customers have already long relied on Walgreens for seasonal confections and gifts, custom photo invitations and décor, greeting cards, and gift wrap. He added, “By adding even more party supplies and décor options, we’re here to help customers celebrate — no matter the season, occasion or everyday moment.”
Discussion Questions
Does Walgreens have a bigger opportunity addressing party occasions?
Is the retail opportunity supporting celebrations evolving and becoming bigger, and what factor does Party City’s liquidation play?
Poll
Loading …BrainTrust
Neil Saunders
Managing Director, GlobalData
Frank Margolis
Executive Director, Growth Marketing & Business Development, Toshiba Global Commerce Solutions
Cathy Hotka
Principal, Cathy Hotka & Associates
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There is nothing wrong with this play, especially as Walgreens already sells things like greeting cards and wrapping paper. It will likely generate a bit of incremental revenue. However, it does not really address the failure of the core Walgreens proposition or its battle for relevance. The other point, of course, is that Walgreens – with its dingy, depressing stores – is hardly a destination that screams celebration. Other players getting into parties – like Michaels and Five Below – are at least vibrant and fun.
To a large extent Walgreens is a general merchandiser, so yes there’s an “opportunity” to fill in, but the same can be said of practically every other GM retailer. And unfortunately for Walgreens some of those other retailers are routinely visted by far more customers, so they will be the beneficiary of visits combining multiple purposes; I don’t really see Wg being a particuarly large (exclusive) destination for this type of product. (Honesty, unless Tom pulled this at random from a flurry of such PR releases, it sounds a little desperate.)
Well, at least they didn’t offer to host birthday parties in Walgreens stores. What a depressing experience that would be!
Ah! but the sound of laughter and gaiety would be uplifting for the other customer(s)…right ?
Will really add to the vibe!!
Walgreens may be able to gain some revenue especially where they are the predominant retailer in the area. However in many areas they will be competing with other national retailers with a more diverse selection of party essentials, as well as the same day delivery from Amazon, Walmart and other retailers offering home delivery services.
There may be some incremental sales lift for last-minute purchases, but anyone planning a party would be best served by shopping elsewhere, with a likely larger selection and lower prices.
Walgreens does have an opportunity to capture more share in party occasions, especially as Party City’s liquidation leaves a gap in the market. Party City’s collapse was less about consumer demand and more about heavy debt, high costs, and weaker traffic — showing that execution and financial structure, not category decline, drove its demise. In fact, the U.S. party supplies market remains strong, estimated at around $5 billion in 2024 and projected to grow steadily in the years ahead.
The retail opportunity around celebrations is also evolving. Consumers are increasingly looking for convenience, value, and last-minute solutions — areas where Walgreens is well positioned, given its dense store base, everyday traffic, and complementary categories like greeting cards and seasonal décor. If Walgreens curates the right assortment and makes fulfillment easy, it can leverage its proximity advantage to meet demand that formerly went to Party City or big-box players.
In short, celebrations as a category continues to grow, and Walgreens has the chance to become a more relevant player. Success will depend on execution — making it easy for consumers to find everything they need for birthdays, holidays, and milestones while reinforcing the convenience and immediacy that drugstores already represent.
As a consumer, I can say that planning a party without Party City has been tough. One stop shopping for party supplies is weak at best.
If Walgreen’s can make it easier for shoppers to get the things they need, and pull together an attractive shop within a store, this has the potential to be a winning strategy.
Walgreens may be able to pick up some last minute or impulse sales by stocking more party merchandise, but given their uninspiring stores and other retailers (like Michaels, Amazon, Etsy et al) offer much better inspiration, variety, and execution.
Recently, I visited a Walgreens that’s close to where I live. I rarely go there because it’s one of those weird intersections that’s a pain to cross. Anyway, I was surprised to see a store that’s light and bright, with a nice HBC and cosmetics section, and a big party department, including a balloon area that’s comparable to what Party City had in its stores. Maybe Walgreens is on to something?
CVS is in the game, too, as is Michael’s. May the most innovative company win!
Perhaps not so much. Walgreens is already a “drug store” that is failing with its current clientele. Repositioning it for a new market, and doing so successfully will require much money, time, and resources. Things which Walgreens does not have enough of as it is…
What is this party expansion taking the place of?
“adding a dedicated space featuring nearly five times more party products than before”
Is that giving up space of daily purchased items for the more sporadic “party” needs? 4Q holidays are a given, but rest of the year would need to be profitable as well.
Walgreens’ decision to try and absorb the party planning market share from Party City is truly cause for celebration. Small occasion events are not only popular, but they create destination shopping, loyalty and store frequency. Helium balloons are still a brick and mortar purchase so this merchandise segment is a winner.
Offering a wider range of party and occasion products won’t make or break Walgreens. As noted, there are lots of bigger issues. But for the moment, Walgreens does have their own captive audience that shop them with some frequency for prescriptions and other health products. So what’s the most efficient use of space and inventory to offer that built in traffic? Another rack of pretzels. chips and licorice, or some potentially higher margin party product that can help create bigger baskets? Sounds like a worthy experiment to me, especially as Walgreens challenges their unproductive space and inventory for the best possible return.
At best we’re talking 4 to 8 feet of items to complement their greeting cards and associated items. Hardly enough real estate to address the diverse themes and occasions shoppers may have. The new CEO of Walgreens just installed comes over from Staples (also owned by Sycamore Partners), where their big development announcement was to have an eye-exam chain co-locate. Maybe just put Staples products inside Walgreens and mini-Walgreens inside Staples, and the eye exam places in the drugstore and the party supplies in the office products store?
“eye exam places in the drugstore”… the eye chart is the ‘fine print’ on Rx!
Four to eight feet? What are they going to replace that is less profitable?
Meh. While certainly there might be an opportunity for some incremental sales, Walgreens is hardly the “party supplies store” and is frankly not doing well at even it’s core proposition.
Just because 78% of the U.S. population lives within five miles of a Walgreens store does not make the new play successful. Convenience is table stakes, and when a consumer first thinks of buying party products, Walgreens will not be top of mind. What the company gains is that its existing customers will discover the expanded assortment and increase their basket size on those special occasions. Unless there is a focused marketing campaign and spend, this play is unlikely to attract new customers or turn Walgreens into a party destination.
Walgreens and its higher price points doesn’t seem a natural to fill the gap. It’s painful to buy wrapping paper or greeting cards at Walgreens. Plus, look at the picture in the article. Walgreens looks old. Not fun as Neil also pointed out.
Michels and dollar-ish stores have a better opportunity to capture the party business.