Craft Retailer Expands Offerings to Capture Market Share
- Michaels expands assortment of baking and entertaining products
- Craft retailer aims to capture market share left by Party City and Joann bankruptcies
- 74% of respondents switch purchases to Michaels or Hobby Lobby after Joann closure
- Michaels was a back-up bidder for Party City’s IP in February
- Increased inventory of balloons and party supplies
- Michaels hosts in-store events for kids and adults
- S&P Global Ratings upgraded Michaels’ credit rating to B- from CCC+
Michaels, a craft retailer, is taking advantage of the market share left by other major retailers like Party City and Joann that have filed for bankruptcy in recent months. With Joann shutting down its business after filing twice for bankruptcy protection and Party City closing all stores last year, Michaels has increased its inventory of balloons and party supplies, as well as hosting in-store events for kids and adults, including birthday parties and private events. This expansion comes as 74% of respondents from a February Numerator survey said they would switch their purchases to either Michaels or Hobby Lobby after Joann’s closure. GlobalData Managing Director Neil Saunders noted that Michaels has a more stable business due to its diverse product offerings and improved operating margin, leading to an upgrade in S&P Global Ratings’ credit rating from CCC+ to B-.
Factuality Level: 9
Factuality Justification: The article provides accurate information about the current market situation of Michaels taking advantage of the bankruptcy of other retailers like Joann and Party City. It includes relevant data from a survey, expert opinions, and financial ratings to support its claims.
Noise Level: 6
Noise Justification: The article provides relevant information about Michaels capturing market share left by bankrupt retailers like Joann and Party City. It includes expert opinions and mentions the reasons behind their success, such as a stable business model and diversified product offerings. However, it could have provided more data or examples to support the claims and explore the consequences of decisions on those who bear the risks.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses Michaels capturing market share left by bankrupt retailers like Joann and Party City, which impacts financial markets as it affects the competition in the crafts and party supplies industry. It also mentions Michaels’ improved credit rating by S&P Global Ratings due to better operating margin and cash generation.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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