What's happened
Michaels Companies has completed its acquisition of Joann's intellectual property and private label brands, including the Big Twist yarns. This move aims to expand Michaels' offerings in fabric, sewing, and yarn, responding to increased consumer demand. Joann recently filed for bankruptcy and closed all its stores.
What's behind the headline?
Market Dynamics
- The acquisition allows Michaels to consolidate its position in the crafting market, particularly in fabric and yarn.
- Joann's established customer base provides Michaels with an opportunity to attract former Joann shoppers.
Consumer Trends
- Recent data shows a significant increase in online searches for fabric (77%) and sewing (39%), indicating a growing interest in crafting.
- Michaels' expansion plans include over 600 new products, which will likely cater to this rising demand.
Competitive Landscape
- The acquisition positions Michaels favorably against competitors in the crafting sector, especially as Joann's operational challenges have left a gap in the market.
- Michaels' CEO, David Boone, emphasized the importance of responding to customer needs, suggesting a proactive approach to market changes.
What the papers say
The New York Post reported that Michaels' acquisition includes Joann's popular Big Twist yarns, which have been staples in the crafting community. The Independent highlighted Michaels' strategy to attract Joann's customers through targeted marketing and a dedicated landing page on its website. AP News noted that the financial terms of the acquisition were not disclosed, but the move is seen as a response to increased consumer demand for crafting supplies. The Independent also pointed out the operational challenges faced by Joann, which led to its bankruptcy and closure of all stores, creating an opportunity for Michaels to expand its market share.
How we got here
Joann, a well-known craft retailer, filed for Chapter 11 bankruptcy twice within a year, leading to its decision to close all stores. Michaels' acquisition of Joann's assets is part of its strategy to enhance its product offerings in response to rising consumer interest in crafting.
Go deeper
- What does this mean for Joann's former customers?
- How will Michaels integrate Joann's products?
- What are the future plans for Michaels after this acquisition?
Common question
-
What Does Michaels' Acquisition of Joann's Brands Mean for Consumers?
Michaels' recent acquisition of Joann's brands has raised many questions about the future of crafting supplies and the implications for consumers. With Joann's bankruptcy and store closures, what does this mean for the craft and fabric market? Here are some key questions and answers to help you understand the impact of this acquisition.
More on these topics
-
Michaels Stores, Inc. is a privately-held chain of 1,252 American and Canadian arts and crafts stores, as of January 2021. It is one of North America's largest provider of arts, crafts, framing, floral and wall décor, and merchandise for makers and do-it