Dive Brief:
- As Joann shutters its store footprint, respondents to a recent Numerator survey said they would now shop for those products at Michaels or Hobby Lobby (74%), other online retailers (44%), mass retailers like Target or Walmart (39%), independent or local craft or fabric stores (24%) and dollar or discount stores (23%), according to results shared with Retail Dive.
- While eight in ten respondents said they were upset by Joann’s closures, nearly seven in ten (69%) said the store’s closures would have a slight to significant impact on them, the survey found.
- Among the reasons shoppers bought items from Joann were good sales or discounts (65%), product assortment (65%), convenient locations (50%), good prices (49%) and its brand reputation (43%), per the survey results.
Dive Insight:
Craft chain stores Michaels and Hobby Lobby are poised to pick up Joann’s market share.
Numerator’s survey noted that shoppers turned to Joann for sewing and crafting supplies (79%), fabrics (58%), holiday and seasonal decor (54%), and home and gardening items (23%).
Last month, Joann filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, a move it made less than a year after its previous bankruptcy filing in March 2024. In its January bankruptcy filing, it listed its liabilities as between $1 billion and $10 billion.
This month, Joann sought court approval to close more than 500 of its stores across the country. The company hoped to find a buyer to avoid shuttering entirely. However, this week GA Group and the retailer’s lenders ultimately won the auction, and initiated going-out-of-business sales at all 800-plus Joann locations. In court documents, GA Group and the retailer’s lenders said they would provide cash consideration to pay the company’s lenders in full and offer an extra $105 million credit bid for the majority of Joann’s assets.