Michaels revives Joann brand with new store concept

In the aftermath of Joann's collapse, Michaels Stores, a key player in the arts and crafts retail sector, has taken a significant step by reviving Joann's brand name. This revival comes with the introduction of a new 'Knit & Sew Shop' format, which is being rolled out to all Michaels locations across the United States and Canada. The initiative features Joann's branding and the popular Big Twist yarn, both of which Michaels acquired when it purchased Joann's intellectual property in June 2025. Currently available in 840 stores, this new concept will expand to an additional 250 locations in the following months, along with online availability. The introduction of this format responds to a perceived market gap following the decline of both Joann and Party City, which former Michaels CEO David Boone identified after observing customer demands for products and services that were once part of Joann's offerings. Boone stated that many former Joann customers have sought similar items, indicating a strong emotional connection to the brand. Additionally, on the same day as the announcement regarding Joann, Michaels introduced a new section called 'The Party Shop at Michaels.' This section aims to offer a wider selection of party supplies, including balloon bars and birthday party services for children. The prices for services have been significantly reduced, illustrating Michaels' commitment to making party supplies more accessible. According to Boone, since adding party supplies to their selection in April 2025, Michaels has become the largest specialty retailer in the balloon and party supply market, which suggests a real demand for these products. Analysts, including Neil Saunders from GlobalData Retail, have recognized that with both Joann and Party City no longer in the market, there is a substantial demand for crafting and party supplies. He noted that many retailers, including general stores like Walgreens and Five Below, are vying for a share of this market. However, given Michaels' dedicated focus on sewing and party supplies, it is well-positioned to capture a significant portion of the market. Boone emphasized that Michaels has optimized its global supply chain to navigate the issues that contributed to Joann and Party City's demise, such as tariffs. He expressed cautious optimism regarding consumer spending trends, highlighting an uptick in interest in arts, crafts, and celebration-related activities. Ultimately, Michaels is strategically leveraging Joann's brand legacy while expanding its own offerings, acknowledging the resurgence of consumer interest in creativity and community connections, which may reflect current societal trends. The revival of Joann's brand through Michaels illustrates a strategic shift and an opportunity to fill the void left by the competitor's exit from the market.