Michaels Expands with Key Joann Fabrics IP and Private Label Brands
In 2024, Joann Fabrics filed for bankruptcy. It shocked many of us who love crafting. For years, Joann was the go-to place for fabric, yarn, and sewing supplies. But rising costs, fewer in-store shoppers, and online pressure took a toll. Now, Michaels, the biggest arts and crafts store in North America, is stepping in. They’re not buying Joann’s stores, but they are taking over some of its most valuable parts. That includes Joann’s website, customer data, and private label brands. This Michaels Joann Fabrics move could change the crafting world.
We are seeing a major shift in where and how we buy craft supplies. Michaels is using this chance to grow bigger. They are adding more fabric choices, new kitchen and party items, and even launching online classes. Their goal is clear: attract loyal Joann customers and keep them happy.
Let’s explore Michael’s growth with collaborations of Joann’s brand power. We’ll also look at how this affects shoppers like us, and what it means for the future of DIY.
The Fall of Joann Fabrics
Joann Fabrics has been a staple in the U.S. crafting scene since 1943. They offer a wide range of fabrics, yarns, and sewing supplies. However, the company faced challenges like online competition, declining foot traffic, and pressure from rivals such as Michaels and Hobby Lobby.
These factors led to its second bankruptcy filing and the closure of all 850 stores. This results in approximately 19,000 job losses.
Michael’s Acquisition of Joann’s Intellectual Property
Michaels seized the opportunity to acquire Joann’s IP, including its website and customer data. This strategic move allows Michaels to tap into Joann’s loyal customer base and integrate valuable product designs and brand recognition into its offerings.
Michaels did not buy Joann’s physical stores. This helps Michaels save money on running stores. But Michaels still gets the benefits from Joann’s online website and digital brands.
Expansion of Private Label Brands
To attract former Joann customers, Michaels is enhancing its private label offerings. They have introduced new product lines such as Makery, Ashland Kitchen, and Sweet Street & Bakell, which offer affordable and stylish kitchen accessories.
These brands focus on quality and affordability, aiming to cater to a broader customer base and fill the gap left by Joann’s departure.
Enhance Fabric and Sewing Supplies
Michaels is expanding its fabric selection, adding over 10,000 unique fabrics to its inventory. This move is designed to fill the void left by Joann in the fabric and sewing supplies market.
Some customers have expressed concerns about fabric quality and selection, and Michaels is actively working to address these issues and meet the needs of sewing enthusiasts.
Digital Transformation and Online Presence
Michaels is investing in digital platforms, including the launch of MakerPlace, which offers handmade goods, artist-led classes, and how-to guides. This platform has options for customers to learn new skills and purchase unique handmade items. It enhances Michael’s e-commerce capabilities.
Michaels is adding Joann’s online parts to its website. This helps Michaels build a strong online store. It meets the needs of today’s crafters.
Competition and Market Changes
The arts and crafts market is changing because Joann closed its stores. Other stores like Hobby Lobby, Walmart, and Amazon want to get more customers. Michaels is trying to add more products and improve its website to stay ahead.
A survey showed that 74% of Joann’s shoppers plan to buy from Michaels or Hobby Lobby now. This gives Michaels a big chance to gain more customers.
Customer Reception and Community Engagement
Former Joann customers have had mixed reactions to Michael’s expanded offerings. Some appreciate the increased fabric selection and new product lines, and others miss the unique aspects of Joann’s stores.
Michaels Joann Fabrics is making efforts to welcome new customers through targeted marketing and community-building initiatives. This strategy emphasizes the importance of customer feedback in shaping their product offerings and services.
What’s Next for Michaels
Michaels has the potential to solidify its position as the leading arts and crafts retailer in North America. Michaels diversifies its product offerings and invests in digital innovation, so it can continue to grow and adapt to changing consumer preferences.
However, challenges such as maintaining quality, managing supply chains, and staying ahead of competitors remain.
Final Thoughts
Michael’s strategic acquisition of Joann’s IP and expansion of private label brands mark a notable shift in the arts and crafts retail industry.
As Michaels Joann Fabrics continues to evolve and adapt, it plays a key role in the future of craft for consumers, offering a blend of traditional supplies and modern digital experiences.
Frequently Asked Questions (FAQs)
Michaels does not own Joann’s stores. Michaels bought some of Joann’s online assets and private brands, but Joann’s physical stores are closed and not owned by Michaels.
No company bought all of Joann Fabrics. Michaels bought Joann’s website, customer data, and some private brands. Joann’s stores closed after bankruptcy and were not sold as a whole.
Prices at Michaels and Joann are similar, but it depends on the product and sales. Sometimes Michaels offers better deals, while Joann had more frequent coupons before closing.
Joann’s online store was closed after bankruptcy. Michaels now owns Joann’s website and runs it under its brand and system for online shopping.
Disclaimer:
This content is made for learning only. It is not meant to give financial advice. Always check the facts yourself. Financial decisions need detailed research.