“Is JoAnn going out of business?” – This question has been circulating among craft enthusiasts and shoppers. It has caused lots of stirring concerns and curiosity in the hearts of JoAnn fans. JoAnn is no doubt a household name in the world of fabrics and crafts.
However, like many others in the retail sector, JoAnn has also had its fair share of challenges, including having many of its stores closed recently. But does this mean it’s closing its doors for good?
Well, the short answer is no, JoAnn is not going out of business. Though it has indeed closed several stores, it is more of a strategic move rather than a sign of the end for the brand.
Curious about what’s really happening with JoAnn and why it’s closing stores? Just keep reading the post. By the end of the article, we are sure you will already have the answer to the question, ‘Is JoAnn going out of business?’
A Closer Look at JoAnn Fabrics
JoAnn Fabrics, now known simply as JOANN, is a beloved destination for crafters and hobbyists. Offering a vast selection of materials ranging from yarn and thread to beads and sewing patterns, JOANN has established itself as a one-stop shop for creative projects.
The company is not a new one; it has its roots traced back over decades, and that has been a contributing factor to the popularity it has today.
However, despite its popularity, JoAnn has not been immune to the challenges facing the retail sector. Recently, the company closed eight of its 842 stores across the United States, including locations in New Hampshire and West Virginia.
Is JoAnn Going Out of Business?
As we said earlier, the answer to the question is a resounding no! While the company has closed some stores, it is not indicative of a total shutdown.
In fact, JoAnn’s public relations manager, Shauntine Lilly, has confirmed that the brand has no plans to permanently close all its stores. The recent closures are part of a standard business strategy where the company continues to invest in new store locations while occasionally shuttering others.
This approach is not uncommon in the retail industry, especially for businesses with a significant number of brick-and-mortar locations. It’s a method of staying agile and responsive to the changing demands and preferences of customers, especially after the COVID-19 pandemic.
So, is JoAnn going out of business? No, the recent store closures happening at the company are not an indication that the company is going out of business.
How is JoAnn Doing Financially?
JoAnn’s financial health is a critical factor in understanding its business decisions. The company, which went public in 2021, has seen fluctuations in its financial performance.
In 2022, JoAnn reported a revenue of $2.2 billion, a decrease from the previous year’s $2.4 billion. Apart from that, the company also faced a substantial net loss of $200.6 million in the last fiscal year, which was a stark contrast to the net income of $56.7 million it reported in the prior year.
These figures suggest that JoAnn is experiencing financial challenges, particularly in the face of changing market dynamics post-pandemic. Even though sales increased significantly for the brand during the COVID-19 crisis because of an increase in home-based crafting and mask-making, the company has not been able to sustain the surge after the pandemic.
Because of this, JoAnn had to adjust its strategy to align with the current economic climate. It has to make some difficult decisions, such as laying off many of its employees at the brand’s headquarters and closing some less profitable locations.
Is it True JoAnn Fabrics’ Revenue is Dropping?
The figures don’t lie. According to available data about the company’s finances, it was clear that JoAnn’s revenue has indeed seen a decline. The 8.3% drop in revenue from 2021 to 2022 is a clear sign that the company is struggling with decreased sales.
This downturn can be attributed to various factors, including reduced foot traffic and changing consumer habits after the pandemic that hit every aspect of life. However, while the decline in revenue is a concern, it is not uncommon for retail businesses to experience such fluctuations.
The key for JoAnn will be in how effectively it adapts to these changes and repositions itself in the market. Other big brands like Big Lots and Bed Bath & Beyond are already doing that.
Why is JoAnn Fabrics Closing Stores?
The decision to close stores stems from many factors. For JoAnn, it’s partly a response to the decreased foot traffic and sales post-pandemic. The shift in consumer behavior, with more people returning to pre-pandemic routines, has affected in-store sales.
Additionally, the closures are part of a strategic realignment, where the company is focusing on optimizing its store locations. In some cases, stores are being closed to make way for new ones in more strategic locations.
Which JoAnn Fabrics Stores Are Closing?
The closures have included stores in key states like New Hampshire and West Virginia. For instance, the Keene store in New Hampshire and the Bridgeport store in West Virginia are among those that have been closed. Also, closures in New York, such as the Batavia store, have been part of this wave.
The interesting thing is that these closures are a fraction of the company’s extensive network of over 800 stores. So, if people are asking, ‘Is JoAnn going out of business because of the few stores that were shuttered, they need to rethink this over again.
JoAnn Laying Off Workers
The decision to lay off workers is another significant aspect of JoAnn’s current business strategy. The company has confirmed layoffs at its Hudson headquarters, though the exact number is not publicly known.
These layoffs span various departments, indicating a comprehensive restructuring effort to align the company’s resources with its current business needs. JoAnn looks to be streamlining operations and reducing expenses with these closures and layoffs. The company said this is an important decision at such a time as this, when the company is facing serious economic pressures.
What Are Some Stuff You Can Get from JoAnn?
JoAnn is undoubtedly a well-known name in the world of crafting and home décor. The brand offers an extensive range of products that cater to a variety of creative needs.
Whether you’re a seasoned crafter or just starting out, you will find a host of items to inspire and support your projects. Let’s take a quick look at some of the key product categories available at JoAnn.
Fabrics
JoAnn usually has a wide selection of fabrics. This includes everything from basic cottons and luxurious silks to specialty fabrics like fleece and upholstery material. So, it doesn’t matter whether you are sewing a new dress, creating home décor, or tackling a quilting project; there’s a fabric to suit every need.
Yarn and Needle Art Supplies
For knitters and crocheters, JoAnn offers a variety of yarns in different weights, fibers, and colors. Additionally, the store provides an array of needles, hooks, and accessories necessary for needle arts.
Craft Supplies
This category covers a broad range of materials, including scrapbooking items, beads, craft paints, and more. This makes JoAnn a perfect stop if you are thinking of making jewelry, decorating scrapbooks, or engaging in any other craft. You will find the supplies you need.
Sewing Machines and Supplies
JoAnn is also a destination for sewing enthusiasts, offering sewing machines, cutting tools, threads, buttons, zippers, and other sewing notions.
Home Decor and Floral
For those looking to spruce up their living spaces, JoAnn provides a selection of home décor items, including fabrics for home furnishing, artificial flowers, and decorative accents.
Baking and Party Supplies
Beyond crafts, JoAnn also caters to party planners and bakers with a range of baking tools, cake decorating supplies, and party décor.
Seasonal and Holiday Items
JoAnn is well-stocked with seasonal decorations and craft supplies for holidays throughout the year, from Christmas and Halloween to Easter and Fourth of July.
Kids’ Crafts
Catering to the younger audience, JoAnn offers a variety of kid-friendly craft kits, activity sets, and educational materials to encourage creativity in children.
Who Are Some Top JoAnn’s Competitors?
JoAnn indeed operates in a competitive retail landscape, particularly in the arts and crafts sector. The company faces competition from a variety of retailers, both specialized and general, that cater to similar markets and consumer interests. Let’s see a few of them.
- Michaels: Michaels is perhaps the most direct competitor to JoAnn. It is the largest arts and crafts specialty retailer in North America, offering a wide range of crafting supplies, home décor, and seasonal products.
- Hobby Lobby: Another major player in the arts and crafts industry, Hobby Lobby offers a similar range of products to JoAnn. Think of products like fabrics, crafts, home décor items, and a vast selection of holiday and seasonal decorations.
- AC Moore: Although AC Moore announced the closure of all its stores in 2019, it was a significant competitor in the arts and crafts market, competing directly with JoAnn and Michaels in various regions.
- Target: Known for its wide variety of goods, Target competes with JoAnn in the home décor and seasonal items categories. Its focus on trendy and affordable products attracts a demographic similar to JoAnn’s.
- Home Depot and Lowe’s: For DIY home décor enthusiasts, these home improvement giants offer supplies that overlap with some of JoAnn’s offerings, especially in the realm of home décor and seasonal products.
Is JoAnn Going Out of Business – Final Note
From all that we have explained in this article, we believe it’s now clear that while JoAnn is facing challenges, it is not going out of business.
The store closures, financial struggles, and layoffs are part of the company’s strategy to adapt to the changing retail landscape.
So, are you feeling really concerned about the future of JoAnn Fabrics because of the several speculations circulating about it? You should let your mind be at peace because JoAnn isn’t going anywhere!
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