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 its party supply space, accommodating 700 new products, including DIY balloon arch kits and themed accessories. The company has also reduced the price for in-store birthday parties from $299 to $149.
Why It's Important?
The expansion of Michaels' shop-in-shops is significant as it fills the void left by the closure of Joann and Party City, positioning Michaels as a key player in the creative and celebration retail market. This strategic move aims to attract customers seeking diverse crafting and party supplies, potentially increasing foot traffic and sales. By offering enhanced services and lower price points, Michaels is likely to strengthen its competitive edge against other retailers like Walgreens, which have also expanded their party assortments. This development could lead to increased market share and customer loyalty for Michaels.
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 is also enhancing its delivery options, having added DoorDash and Uber Eats to its services in July 2024, joining Instacart. These efforts are expected to improve customer convenience and accessibility, potentially driving further growth in sales and customer engagement.
Beyond the Headlines
The introduction of shop-in-shops at Michaels reflects broader retail trends towards specialization and experiential shopping. By creating dedicated spaces for specific product categories, Michaels is tapping into consumer desires for personalized and immersive shopping experiences. This approach may influence other retailers to adopt similar strategies, reshaping the landscape of brick-and-mortar retail.
