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Executive Summary:
With Joann shutting down all 800+ stores following its Chapter 11 bankruptcy, a Numerator survey reveals that Michaels and Hobby Lobby will absorb the majority of Joann’s displaced shoppers. 74% of surveyed customers plan to switch to these craft retailers, while others will turn to online retailers (44%), mass merchants like Walmart and Target (39%), and local craft stores (24%).
Key Findings:
- Major Shopping Shifts: Joann customers primarily bought sewing/crafting supplies (79%), fabrics (58%), and holiday décor (54%)—categories where Michaels and Hobby Lobby are well-positioned to take over.
- Financial Collapse: Joann’s second bankruptcy in a year left the company with liabilities between $1 billion and $10 billion, ultimately leading to its liquidation.
- Emotional and Practical Impact: 80% of respondents expressed disappointment over Joann’s closure, and 69% said it would significantly affect them, citing reliance on Joann’s discounts (65%), product variety (65%), and convenient locations (50%).
While Joann sought a buyer to avoid liquidation, GA Group and its lenders ultimately won the auction, leading to going-out-of-business sales at all locations. This major shift in the craft retail space cements Michaels and Hobby Lobby as dominant players in the industry.
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