There is a gap in the marketplace created by the closure of most Party City locations and all the JoAnn stores. Michael’s is attempting to capitalize on this void by catering to the former customers of the closed chains. Signs on their shopping carts speak specifically to them, highlighting which aisle the replacement items may be found and noting the other services Michael’s provides that may be of interest. Outside are large banners proclaiming that they now carry balloons and fabric — two of the staples from the shuttered locations.
It makes sense for Michael’s to leverage its similarities to capture the displaced customers, but I hope they don’t do it at the expense of losing their own identity. All the fabric they now carry occupies square footage that used to showcase other things — what has been lost? Stocking balloons and fabric are high-touch products that require human intervention before they can be sold — did they alter staffing patterns to accommodate this?
Serving everyone sounds like a great business plan until it becomes time to actually execute it. No one store will ever carry the depth and variety of three franchises, and spreading yourself too thin may make you third on the bankruptcy list instead of first in profitability. Don’t try to do it all.
Thanks, Meg!
