Michaels Seeks to Capitalize on Joann’s Closure as Craft Retail Landscape Shifts

Michaels, the largest craft retailer in the United States, is strategically positioning itself to attract customers from Joann, a fabric and craft store chain slated to shutter all of its locations by the end of May. Joann’s demise marks a significant shift in the craft retail landscape, creating an opportunity for Michaels and other retailers to capture a substantial portion of the displaced market.

To welcome potential new customers, Michaels has prominently displayed a message on its website, extending an invitation to Joann shoppers and highlighting its comprehensive selection of craft essentials and beyond. This move comes as Joann, which previously operated approximately 800 stores nationwide, undergoes a complete closure following its second Chapter 11 bankruptcy filing in less than a year, the initial filing occurring in January 2025.

The closure process has been underway for several weeks, with about one-third of Joann’s stores already shuttered last month. Retail liquidator GA Group, along with Joann’s term lenders, acquired Joann’s assets in February 2025 and are overseeing the liquidation process. The remaining 500-plus Joann stores are currently conducting going-out-of-business sales and are scheduled to close their doors permanently by the end of May, according to company statements.

The departure of Joann, a retailer known for its focus on quilting and sewing supplies, will undoubtedly be felt by many consumers within the crafting community. Abby Glassenberg, co-founder of Craft Industry Alliance, emphasized Joann’s significance in the crafting ecosystem, stating that its absence will be a loss for many crafters.

However, Glassenberg also noted a potential silver lining for independent brick-and-mortar craft stores. Without Joann’s extensive presence in major metropolitan areas, these smaller, independent retailers may have a greater opportunity to thrive, becoming the primary or only craft supply option in their respective communities.

Joann’s financial performance in 2023 revealed a complex picture, with $2.2 billion in sales but a net loss of $200.6 million. Despite its substantial revenue, the company struggled to maintain profitability, ultimately leading to its bankruptcy and subsequent closure.

Joann’s exit from the retail scene coincides with a surge in interest in crafting, fueled by the growing popularity of craft-related content on social media platforms such as TikTok and Instagram. Craft videos showcasing various techniques and projects have garnered significant viewership, further contributing to the demand for craft supplies and resources. Popular hashtags like #craftnight and #craftideas reflect the widespread engagement with crafting activities.

Michaels, founded in 1973 and headquartered in Irving, Texas, appears to be a natural destination for former Joann customers. With over 1,300 stores spanning 49 states and Canada, Michaels boasts a vast network and established brand recognition within the craft retail sector. However, other retailers are also poised to benefit from Joann’s closure.

A recent online survey conducted by Numerator, involving 500 Joann shoppers, revealed that a significant majority (74%) plan to shift their purchases to other chain craft stores, including Michaels and Hobby Lobby. In addition to chain stores, a substantial portion of respondents indicated that they would shop online (44%) or at mass retailers such as Walmart or Target (39%). Other potential destinations for Joann shoppers include independent or local retailers (24%) and dollar or discount stores (23%).

Numerator’s statement to USA TODAY underscored the significant opportunity for competitors to capitalize on Joann’s closure, noting that nearly three-quarters of Joann shoppers intend to redirect their spending to other chain craft stores. This shift in consumer behavior presents a valuable chance for retailers like Michaels and Hobby Lobby to expand their customer base and market share.

The closure of Joann represents a pivotal moment in the craft retail industry, reshaping the competitive landscape and creating new opportunities for existing players. As Michaels actively seeks to attract former Joann customers, other retailers across various channels are also vying for a piece of the displaced market. The evolving dynamics of the craft retail sector will likely continue to unfold as consumers adjust to the absence of Joann and explore alternative sources for their crafting needs. The increased visibility of crafting through social media will undoubtedly contribute to this evolving landscape, potentially driving growth for both established retailers and emerging independent businesses.

The departure of Joann also leaves a void in the specific niches it catered to, particularly quilting and sewing. Retailers that can effectively cater to these specialized areas may find themselves particularly well-positioned to capture a segment of Joann’s former customer base. This could involve expanding product offerings in quilting and sewing, providing specialized services such as classes or workshops, or fostering a strong community around these crafts.

The future of craft retail will likely be characterized by a multi-faceted approach, with online channels, mass retailers, independent stores, and specialized craft chains all playing a role in meeting the diverse needs of crafters. Retailers that can adapt to the changing preferences of consumers, embrace the power of social media, and offer a compelling combination of products, services, and community will be best positioned to thrive in the evolving craft retail landscape.