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Dive Brief:
Looking to grab market share amid Party City and Joann’s liquidations, Michaels has launched two new in-store concepts across its 1,300-store fleet: The Knit & Sew Shop and The Party Shop. The moves increase Michaels’ yarn selection by 25%, the space dedicated to fabric in stores by 25% and its in-store party assortment by 700 items, per a company press release.
The Knit & Sew Shop, which features threads, sewing notions, yarn and fabric, builds on Michaels’ acquisition of Joann’s IP and private labels earlier this year. The spaces are co-branded with the Michaels and Joann logos and include well-known Joann private labels. Fabric is currently available in 840 stores, with 250 more slated to add it, and fabric cutting tables will be available in more than 650 stores by mid-October.
The Party Shop offers customers an expanded in-store assortment, including DIY balloon arch kits, tableware, themed paper goods and a dedicated balloon bar. Themes range from western to elegant, and party supplies start at $0.99, according to the company. Shoppers can also schedule a balloon pick-up time, build custom bundles online for in-store pickup and schedule balloon deliveries.
Dive Insight:
The launch of both in-store shops by Michaels is a way for the retailer to pick up market share left by Joann and Party City, which each recently filed their second bankruptcies and closed all their doors.
Surveys have shown there’s opportunity. As Joann announced its liquidation, a Numerator study found 74% of shoppers said they would shift their purchases to Michaels or Hobby Lobby. Michaels is also picking up the leases on three Joann locations in Arkansas, Texas and California, and will reopen them as Michaels stores at the end of the year, according to a company spokesperson.
“The launch of The Knit & Sew Shop and The Party Shop at Michaels is a transformative step forward on our mission to become the go-to destination for fueling creativity and celebration,” Michaels CEO David Boone said in a statement. “We are proud to offer an unmatched experience for creating and celebrating through our expansive product assortments, enhanced services, lower price points, and seamless in-store and online shopping options.”
Michaels began adding to its party products and services earlier in the year as Party City was winding down operations. With the new party shops, Michaels now sells even more products in stores and offers 79,000 items online. At the same time, Michaels is reducing the price of its in-store birthday parties from $299 to $149 and has slashed prices by 25% to 70% on over 200 party products.