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Michaels has a few opportunities to grab market share from disappearing retailers. Chief Merchandising Officer Stacey Shively in a statement went so far as to call Michaels “the destination for creating and celebrating in communities across North America.”
The crafts retailer came close to swallowing Party City’s share whole: Michaels was listed as the backup bidder at Party City’s bankruptcy auction in February. But, with a $20 million bid, New Amscan, an affiliate of producer, manufacturer and distributor Ad Populum, bought Party City’s IP and wholesale operations.
In addition to Party City’s near-total demise, sewing and crafts chain Joann earlier this year said it would cease operating and close all stores. Joann customers say they will now shop at Michaels or Hobby Lobby (74%), other online retailers (44%), mass retailers like Target or Walmart (39%), independent or local craft or fabric stores (24%) and dollar or discount stores (23%), according to a February Numerator survey.
The segment is readjusting to commerce after the pandemic. During lockdowns crafting flourished, but consumers abandoned their projects once they were allowed more freedom to gather and get out and about. Michaels in particular met the moment in 2020 by boosting its e-commerce and omnichannel offerings. But the retailer’s debt became a heavy load two years later as the air went out of the crafting balloon.
These days Michaels is making its moves under new leadership. David Boone, who had been leading e-commerce and third-party logistics company Essendant, took over from Ashley Buchanan in February. Buchanan left the month before to take the top spot at Kohl’s.
Correction: This story has been updated to note David Boone’s CEO appointment in February.