Michaels has pushed fabric back into the mainstream of its store footprint: the craft retailer says fabric is now stocked in nearly 90% of its locations as it rolls the Knit & Sew Shop concept out to more than 1,200 stores.
What changed
The company added more than 1,600 products across fabric, yarn, sewing and needlecraft categories and introduced over 400 new fabric SKUs in areas such as quilting, cosplay and special-occasion sewing. Michaels is running in-store events, product demonstrations, community meetups and online classes to coincide with National Sewing Month and to drive foot traffic.
Why it matters
The expansion follows Michaels’ June 2025 acquisition of Joann’s intellectual property and private labels, after Joann filed for bankruptcy earlier that year. Michaels launched the Knit & Sew concept in fall 2025 as a co-branded in-store experience using Michaels and Joann branding, then accelerated the program to capture displaced demand.
At the ICR Conference in January, CEO David Boone said the market was disrupted by the exits of Joann and Party City and that Michaels’ priority was to pursue the opportunity created by those exits. Stacey Shively, Michaels’ chief merchandising officer, described the initiative as an investment to expand product choice and lower the barrier to entry for new sewing customers.
Store experiments and customer experience
Beyond assortment, Michaels is piloting shop-in-shop experiences with brands such as Big Twist and DMC Embroidery Threads. The retailer also tested new store formats at three locations that included revamped department layouts, new personalization services and a self-checkout lane reserved for rewards members. Michaels told Retail Dive it plans to open additional concept stores this year.
What professionals should watch
For marketers, suppliers and competitors, Michaels’ strategy combines rapid assortment expansion, calendar-tied experiential programming and format experimentation—moves designed to increase conversion and loyalty value. The company’s push is especially notable in specialty categories like quilting, needlecraft and costume making, where Joann had been a primary destination.
Reporting on the rollout relies on Michaels’ press release and company statements; the announcement did not include independent sales, traffic or market-share data. Key indicators to track are whether the Knit & Sew rollout produces measurable sales gains, how quickly Michaels expands concept-store pilots, and how specialty retailers and suppliers respond to the larger craft footprint.
What to watch next: suppliers should evaluate distribution and promotional opportunities, local marketing teams should expect community-focused events to be a priority, and competitors will need to decide whether to compete on assortment, experience or local service.
