Joann’s has been a fabric and craft mainstay for an entire nation for the last 80 years. Tragically, they are facing a nationwide closure that includes almost 800 stores.
However, in the ashes of one retailer, others will rise and seize the opportunity to offer a market for millions of loyal customers who are now displaced and looking for alternatives.
This sudden vacuum in the $44 billion U.S. craft industry hasn’t been overlooked by competitors like Michaels and Hobby Lobby, who need to quickly court Joann’s shoppers. Joann’s was more than just a franchise; it was a community hub for many, which makes finding a new alternative essential.
Joann’s Rise And Fall
Joann’s has a long history ingrained in the lifestyle of many Americans and once stood dominant, especially during the pandemic’s DIY boom.
However, Joann’s success quickly reversed as the consumer market underwent a rapid change and debt started to mount, leading the company to face two bankruptcies in one year. Joann’s was once a fixture in many American towns due to their stock of unique fabrics, crafts, and engagement with the community.
However, as Joann struggled with inventory shortages as well as store maintenance, rivals around them gained ground.
Market Dynamics
With Joann’s facing closure, dominant rival chains are now trying to quickly move into their territory, especially Michaels and Hobby Lobby. These retailers had already had more stores and higher revenue than Joann’s even before its closure.
Hobby Lobby alone generates around $8 billion annually. These rival companies have broader inventory and robust loyalty programs, which means they have the capacity to quickly win over Joann’s customer base.
As Joann’s shelves empty and its doors close across the country, market share will no doubt flow towards these other companies.
More Than A Store
Although at the end of the day, Joann’s was just another retailer, but that’s not the way many communities feel. To many, Joann’s was a sanctuary for crafters, quilters, and hobbyists.
Competitors can use this emotional leverage to pull in displaced customers by properly addressing this emotional disruption.
If other stores can fill the same niche by replicating Joann’s unique sense of community by hosting classes, local events, and targeted messages, they foster lifelong loyalty, just as Joann’s did before them. Emotional rescue is a powerful tool that can be utilized for market dominance.
Digital Acceleration
The decline of Joann’s was only further exacerbated by its inability to compete with the online retail market. Other retail stores invested into e-commerce platforms and omnichannel strategies that pull people away from physical stores and shop from the convenience of their homes.
Michaels and Hobby Lobby both have good online storefronts, which can now target Joann’s customers through personalized ads, curated product bundles, and seamless curbside pickup.
This pivot to online shopping and advertising in a digital age is a guaranteed way to send more traffic both into stores and increase orders online.
Looking For More Customers
Michaels, in particular, has voiced its desire for Joann’s consumers to migrate over to the company’s many stores. Michaels had an interesting and on-the-nose message on its company website, “Welcome JOANN Customers. We’ve got your go-to essentials & so much more!”
This straight-to-the-point strategy may stimulate displaced customers into trying them out if they had only ever gone to Joann’s before. Their attempts to target these customers in such a direct way are an effective way of marketing without having to spend money on costly digital and personalized advertisements.
With all of Joann’s stores going to be gone by the end of May, many may consider Michaels a viable alternative.
Small Business Renaissance
While large competitors look at the gap that Joann’s has left, this could leave an opportunity for small, independent craft stores. Local stores can analyze what makes Joann’s unique and what keeps their customers loyal.
By emphasizing unique inventory, personalized service, and community engagement, many disrupted shoppers may look to smaller businesses rather than industry giants. The fragmentation of these customers could be especially beneficial for niche players who are agile enough to leverage social media and local partnerships.
While Michaels and Hobby Lobby look to grab up all the consumers left in the wake of Joann’s closing, smaller businesses may at least win over a portion of them.
Risks Of Overreach
With Joann’s leaving a gap in the market, many competitors will be scrambling to target their customers, but this isn’t without its risks. Companies could overreach through rapid expansion or aggressive promotions.
These actions could dilute brands and strain supply chains. A historical example is when Barnes & Noble gained short-term traffic when Borders collapsed.
Its newfound success wasn’t sustainable, and the company couldn’t keep the long-term integration of new customers. Ambition must be balanced with strategy, ensuring that no vulnerabilities are inherited that spell doom for Joann’s
Ripple Effects
Joann’s closing will have ripple effects beyond just the retail sector. Local economies and creative culture will also be impacted.
Competitors can use this opportunity to invest in community building, sponsorship such as maker fairs, support school art programs, and collaborate with local artists.
This will help to gain a reliable and loyal community and shape the future of crafting. The battle to gain favor with Joann’s customers is more than economic gain; it’s cultural stewardship. Whichever competitor can understand this could lead to the next era in creative retail.
A Realignment
The demise of Joann’s should prompt a slight industry realignment. Competitors like Michaels are trying to bring over the consumers left without a store, but their efforts must be balanced with innovation, emotional intelligence, and community investment.
These qualities will capture the same “soul” that Joann’s used to foster their unique community in craft retail. Targeting Joann’s customers is a logical and tactical decision to gain a foothold amid market disruption.
The next and previous generations of crafters are choosing where to go next, and who will be able to captivate them the most?
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