Quick Facts
- Michaels opened its third next-generation store in Rogers, Arkansas on Aug. 13, 2026, following locations in Easton, Ohio, and Irving, Texas.
- The Knit & Sew shop concept, born from Michaels’ acquisition of Joann’s IP, is now in 840 stores and expanding to 250 more locations.
- Michaels cut in-store birthday party pricing from $299 to $149 and slashed prices 25% to 70% on more than 200 party products.
Michaels opened its third redesigned store in Rogers, Arkansas on Aug. 13, 2026, expanding a new format the craft retailer is testing across locations in Ohio and Texas. The company operates more than 1,300 stores across 49 states and Canada.
CEO David Boone said the company has shifted capital focus toward physical retail after years of digital investment. “We spent a lot of time building out a lot of great digital infrastructure, but clearly not enough on stores and the store experience and that’s where we’ve shifted all of our capital in the past 12 months,” Boone said.
What the New Store Looks Like
The redesigned stores are organized into distinct departments the company calls “worlds.” Each area uses lifestyle vignettes with products, projects, and step-by-step styling instructions to drive inspiration.
The Knit & Sew Shop anchors the front of the store and carries Michaels’ largest-ever fabric and textile assortment. The department features a fabric Cut Bar and an industry-first Swatch Bar, which brings 1,000 online fabric samples into the store. Shoppers can scan a QR code on any swatch to order online or get help from a staff member to place a shipment order on the spot.
A Seasonal and Trends section near the front includes a Pinterest Trend Bar. The bar highlights viral creative trends and stocks the exact products needed to replicate them.
The Framing and Personalization area combines ready-made and custom framing into one space. A glass wall lets customers watch framing specialists work in real time. The section also introduces a Custom Bar with embroidery, engraving, and made-to-order stickers.
Capitalizing on Competitor Bankruptcies
Two major competitors collapsed in 2025, and Michaels moved fast to fill the gap. Joann closed roughly 800 stores after filing for bankruptcy for the second time in under a year. Party City filed for bankruptcy in December 2024 and shuttered nearly 700 locations.
A Numerator study found 74% of Joann shoppers said they would shift purchases to Michaels or Hobby Lobby after Joann’s liquidation. Michaels acquired Joann’s intellectual property and integrated the brand into its stores. “We knew when we acquired the brand that Joann was a beloved brand by a whole bunch of customers,” Boone told CNN.
The Party Shop at Michaels, first launched in 2025, now anchors the new format with a Balloon Bar and expanded event space. Balloon searches on Michaels.com jumped 155% since January 2025, and the company has added more than 300 new balloon options. Michaels now offers 79,000 party items online.
Scale and Pricing Moves
The Knit & Sew concept covers roughly 25% of a Michaels store floor. Fabric cutting tables will be available in more than 650 stores by mid-October. The changes increase yarn selection by 25% and in-store fabric space by 25%.
In-store party assortment has grown by 700 items. The birthday party price cut from $299 to $149 positions Michaels as a direct competitor for the event business Party City left behind.
Boone described the new stores as part of a broader transformation to make Michaels “a true destination for creativity and celebration.” The company plans to open additional concept stores and bring enhanced elements to existing locations throughout 2026. On a potential IPO, Boone said owner Apollo Global Management “will likely want to realize that investment at some point” but that the current focus remains on customer experience.
