New leadership drives growth amid changing consumer behavior

  • Michaels takes advantage of Party City and Joann’s exit from the market
  • Michaels becomes ‘the destination for creating and celebrating’
  • New leadership at Michaels focuses on e-commerce and omnichannel offerings
  • Consumers shifted back to in-person activities after pandemic restrictions eased

With the crafting boom during the pandemic, Michaels is taking advantage of the market share left vacant by Party City and Joann’s exit. The retailer was a backup bidder at Party City’s bankruptcy auction in February but lost to New Amscan, an affiliate of Ad Populum. As sewing and crafts chain Joann closed its stores, Michaels is now benefiting from the shift in consumer behavior. A February Numerator survey found that 74% of Joann customers would shop at Michaels and 44% at online retailers like Amazon. The pandemic saw a surge in crafting, but as restrictions eased, consumers returned to in-person activities. Under new leadership, David Boone (formerly of Essendant), Michaels is focusing on e-commerce and omnichannel offerings.

Factuality Level: 8
Factuality Justification: The article provides relevant information about Michaels’ opportunities and its competition with other retailers, as well as the impact of the pandemic on crafting. It also mentions Michaels’ e-commerce growth and leadership changes. However, it could provide more context on Party City’s situation and Joann’s closure.
Noise Level: 3
Noise Justification: The article provides relevant information about Michaels’ opportunities and challenges in the crafting retail market, including the acquisition of Party City’s IP and the impact of the pandemic on consumer behavior. It also mentions changes in leadership at the company. However, it could benefit from more detailed analysis and data to support its claims.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses Michaels, a crafts retailer, potentially gaining market share from disappearing competitors like Party City and Joann. It also mentions Michaels’ e-commerce growth and new leadership changes. These topics are related to financial performance of the company and its industry.
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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