Michaels Expands Retail Offerings with New Shop-in-Shops for Sewing and Party Supplies

What's Happening?

Michaels has introduced shop-in-shops across its chain, focusing on sewing, knitting, and party supplies. This move follows the acquisition of Joann's intellectual property and private label brands after Joann's bankruptcy in June 2025. The Knit & Sew Shop, featuring both Joann and Michaels logos, offers a curated selection of threads, sewing notions, and yarn, with fabric available in over 840 stores, and plans to expand to 250 more locations. Additionally, Michaels has expanded The Party Shop, accommodating 700 new products, including DIY balloon arch kits and themed paper goods. The company has also reduced the price for in-store birthday parties from $299 to $149. This expansion aims to fill the gap left by Party City's closure, with other retailers like Walgreens also expanding their party assortments.

Why It's Important?

The expansion of Michaels' offerings is significant as it positions the retailer to capture market share left by the closures of Joann and Party City. By integrating Joann's product categories and expanding party supplies, Michaels aims to become a one-stop destination for creative and celebratory needs. This strategic move could enhance customer loyalty and increase foot traffic, potentially boosting sales and revenue. The reduced pricing for birthday parties may attract more customers seeking affordable celebration options, further solidifying Michaels' market position.

What's Next?

Michaels plans to continue expanding its shop-in-shops, with fabric cutting tables available in more than 650 stores by mid-October. The company may explore additional partnerships or acquisitions to further diversify its product offerings. As the holiday season approaches, Michaels could leverage its expanded inventory to attract more customers seeking creative and party supplies, potentially leading to increased sales during this peak shopping period.