Michaels is reviving Joann — but not in the way you think

By Jordan Valinsky, CNN

New York (CNN) — A few months after the collapse of Joann, a former foe is reviving the crafting and fabric store’s brand name.

Michaels announced Wednesday that it is bringing a “Knit & Sew Shop” format to all of its US and Canada locations, which features the Joann name on the signage as well as the Big Twist yarn, a cult-favorite collection that Michaels bought when it also purchased Joann’s intellectual property in June.

The “store within a store” concept, which encompass about 25% of a Michaels store, is now available in 840 stores and will expand to an additional 250 locations in the coming months. The selection is also available online.

“We knew when we acquired the brand — and it’s been proven to us — that Joann was a beloved brand by a whole bunch of customers,” said Michaels CEO David Boone. “Those customers have been looking to Michaels to provide more products and services that Joann provided and this is a major step forward.”

It’s the first time the chain has developed a “store within a store” concept, which Boone said came after he saw a “white space” in the market following the collapse of not only Joann but also Party City.

Also on Wednesday, Michaels is announced another concept called the “The Party Shop at Michaels,” which features an expanded party supply selection, balloon bars, and in-store parties for kids, with prices that have been reduced from $299 to $149.

Michaels first added party supplies to its locations in April, and it’s now the “largest specialty retailer of balloons and party supplies,” Boone told CNN, adding that there was a “real need in the marketplace” for that.

Neil Saunders, managing director and retail analyst at GlobalData Retail, agrees that “a lot of demand is up for grabs” with Joann and Party City both gone. But Michaels is finding competition elsewhere, too.

“Many retailers are trying to take a slice of this, including generalists like Walgreens and Five Below,” Saunders told CNN. “However, party and sewing are more in Michaels’ ballpark and if it executes with authority it can take a good level of share in a way that retailers dabbling in the space won’t be able to do.”

Party City and Joann both partly blamed tariffs for their dissolution, but Boone said Michaels has “optimized our global supply chain” and is growing into new areas, like yarn and party supplies, for additional revenue.

Michaels is owned by private equity firm Apollo Global Management and doesn’t release financial figures. Boone, however, said that he’s noticed that its customers have been “somewhat resilient and so we’re cautiously optimistic” with their spending habits.

“We are seeing more consumers wanting to engage in our category of arts and crafts as well as entertaining, and that may be a response to the environment,” he said. “But there’s definitely an uptick in interest in authentic community, connection, creativity and celebration.”

The-CNN-Wire
™ & © 2025 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.