
Many people are taking to YouTube and other social media sites to raise the hue and cry to "Save Joann's". While I will be among the sad when (not if) they finally close their doors for the last time, I think it's really, REALLY important to understand what factors went into this final implosion.
I posted a shortened version of this on a couple videos about Bankruptcy 2 for Joann's so if it seems familiar, that's why.
One major issue in all of this Joann's mess is that Private Equity companies are only interested in acquisitions that have significant returns for them (big profits) on the short-term horizon. I cannot reconcile how/why anyone thought a craft store - especially one like Joann's - was one of these businesses (looking at you, Leonard Green), but here we are.
It is that assumption, or oversight, along with the reality of Joann's business model, that have led Joann's to today. Sadly, I don't see anyone out there with both the available capital AND the willingness to take on a company/store business that reasonable profit possibilities but over an extended and longer term; not BIG MONEY in a short period of time. THEN, when you look at the DEBT they would inherit from the mismanagement of Joann's, it's just very UNLIKELY to happen, and we need to steel ourselves for this reality.
I'm all about technology. I enjoy it, use it, have all the latest gadgets, and am NOT interested in going back to the 1980's or earlier. BUT, as we know - everything in life is a trade-off. In the retail environment we have to accept that a lot of traditional options for shopping have been ruined by online options. In addition, the economy has been declining since 1978, which was the last point in time where wages were keeping up with increases in the cost of goods and services. People who work for a living have been losing ground ever since, so we are all looking for the "best deal" when shopping.
In addition, more and more people are working more than one full time job just to survive. This cuts into the time available to sew items like clothing. I don't know, nor do I have any data, but my suspicion is that the market for fabric in quantities such as was sold 20 or 30 years ago, has evaporated.
Enter big, multi-national online corporations (looking at you, named after a large river in South America), and we are all caught between being able to AFFORD things, the convenience of online shopping when we are all working multiple jobs just to pay the rent, and the desire to have stores like Joann in our local areas.
In my opinion, this is why they started selling cheap, nearly disposable home decor. They banked on the IMPULSE buys keeping them afloat because price-conscious shoppers can almost ALWAYS find a better deal online, and very often, they can get items they need/want that are not carried in the local craft stores.
Let's face it: these impulse, home decor items (using St. Paddy's Day "decorations" as an example) are a) not essential (will be skipped/not purchased when money gets tight), b) not durable (they are basically one-season decorations), and c) often make zero sense (the golf/disco ball with the hat ??!???!?). They've taken small and pleasant, but incidental holidays and tried to build customer "demand" for what is basically landfill junk. This appears to have been their "big plan" to make a lot of money so they could turn around and SELL Joann's for a BIG PROFIT!
Brilliant (and yes, I'm being sarcastic).
As the volume of IMPULSE (and other) purchases dwindled, Joann's responded by cutting hours, freezing their retirement match for full-time employees, and removing full-time options for all employees except Store Managers and Assistant Store Managers.
This is very sad - mostly for the Joann employees who are paid POVERTY wages compared to other retailers, but also for those of us who count on Joann being there for our creative pursuits.
We still don't know what will happen to the employees whose retirement is tied to Joann. We often think of the part timers - there to get the discount and work in an environment that they enjoy (fabric, yarn, crafts), but there are - throughout the company - people who are close to retirement and ready to tap into their retirement funds. Will they be protected? Or are those folks out of luck? So far that's not clear to anyone outside of the corporate C-Suite.
I write this NOT to be a Debby-Downer, but to lay out the probable outcome of the current situation with Joann's.
Now, let's honestly examine the options for local yarn and fabric/quilt stores, which is the pivot many of the YouTube talking heads are promoting.
I'm a BIG proponent of local businesses, and try to support them as often as I can. However, we have to understand that the yarn, the fabric, the notions and other tools/supplies are not going to be anywhere close to the prices we have grown accustomed to paying. Here's one example, using YARN.
It is not unusual for me to impulse buy skeins of yarn in colors and textures that I like from Big Box retail stores, like Joann's. AND, with all their coupon games, I can usually get enough for a small blanket or throw and spend less than $20.
Yes, it's acrylic and terrible for the environment, but that's a blog post for another day.
Let's compare the cost of similar yarns at a local yarn shop and Joann. I'll use Encore yarns which are often carried in local yarn shops, and Wool Ease, which is of a similar content, and carried by Joann.
Encore (LYS) | Wool Ease (Joann) | |
Yardage | 200 yds | 197 yds |
Content | 75% acrylic/25% wool | 80% Acrylic/20% Wool |
Price | $9.00/skein | $5.49/skein |
Coupon/Sale options | Rarely | Often |
A couple caveats:
Joann's will almost ALWAYS have a sale on yarn, or a coupon. Anyone that pays $5.49/skein for Wool Ease is foolish or uninformed.
Today on their website, the yarn is listed as $4.12/skein. Last week all yarn was 30% off, and there are often BOGO offers, which are basically 50% off sales.
so Wool Ease can be as low as $2.75/skein
Due to the nature of small business in America, the LYS will RARELY put their yarn on sale. This is NOT a criticism; just an observation and an acknowledgment of the realities of being a small business owner.
So from this data we can see that we're looking at basically paying DOUBLE the cost for the same yarn when we switch from Joann to the LYS.
Do I think that the LYS deserves our business more? Absolutely, but most people's economic reality means that a lack of Big Box options will not automatically result in a mass shift to local yarn stores. People will either find similarly priced options, or they will buy a lot less yarn.
It's not much different for fabric.
Cotton Fabric (Local Fabric Store) | Quilter's Showcase (Joann's) | |
Width | 44" | 44" |
Content | 100% cotton | 100% cotton |
Price/yard | $13.00 | $5.99 |
Coupons/Sale options | Rarely | Often |
Again, this is a difference of at least half the price, and as with the yarn, there will be sales on that regular price of $5.99/yard. At this time, the Joann's website lists it for $3.99/yard.
There's no easy answer or simple solution to this situation. Many local yarn and fabric/quilting stores have closed due to the difficulty in competing with Big Box stores and online mega-retailers combined with the cost of doing business as a sole proprietor. It's expensive to run a business, and I would imagine difficult to deal with a public that is accustomed to BIG SALES and coupons all the time.
Still, we have a couple options available to us. Let's explore them.
We can use this opportunity to take a hard look at how much fabric and yarn we buy and stockpile, but never use. Maybe if we were paying a higher price for these items, we'd buy more intentionally and limit, if not eliminate, our stash heaps of fabric and yarn! In addition, we can pace ourselves, and focus on doing projects that take longer.
A number of YouTube channels have dedicated time to the issues around giving hand made gifts that are not appreciated. Perhaps, just perhaps, we can start patronizing our local yarn and fabric stores and making FEWER things that are nicer in quality, for ourselves, or for those people who truly appreciate our work. One higher priced item made from better quality fabric may even cost LESS than the multiple trips to Joann where we grab bags of SALE yarn, fabric and more. I may do a price comparison one of these days, just for fun!
The bottom line in all of this is that Joann is very likely NOT going to survive, but I can promise you this: we can, and we will. We have options, choices, and we're CREATIVE! Just try keeping us from crafting and creating (not gonna happen).
I am actually looking forward to the "new normal" for me and my yarn and fabric habits. I encourage everyone to think about the coming disruption, and at least be OPEN to the new way that comes - whatever it may be. It's really the only choice we have in the matter.
In the meantime, I'll be working on crafting down my stashes of fabric and yarn, and figuring out what to store in the bins and shelves that once held all of it!
Happy Crafting!
(C) 2025 Stitch 'n Dish
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