Why Are Joann Stores Closing Examining The Retail Shift

In recent years, shoppers across the United States have noticed a growing number of “Store Closing” signs in Joann Fabrics and Crafts locations. Once a staple for crafters, quilters, and DIY enthusiasts, the retail chain has shuttered dozens of stores since 2023, with more closures on the horizon. This isn’t just a business decision—it’s a symptom of a broader transformation in retail. Understanding why Joann stores are closing requires looking beyond inventory and sales numbers to examine shifts in consumer behavior, digital competition, and structural challenges facing brick-and-mortar retailers.

The Rise and Fall of a Craft Retail Giant

Founded in 1943 as a single fabric shop in Ohio, Joann grew into the largest arts-and-crafts retailer in the U.S., operating over 800 stores at its peak. For decades, it served as a go-to destination for sewing supplies, holiday decorations, yarn, and seasonal crafting materials. Its aisles were filled with loyal customers—often older women, hobbyists, and schoolteachers—seeking quality fabrics and creative inspiration.

But the retail landscape has changed dramatically. The pandemic accelerated trends that were already underway: online shopping, subscription boxes, and direct-to-consumer brands. While Joann attempted to adapt, competitors like Michaels outpaced it in digital innovation, while Amazon captured convenience-driven buyers. By 2023, Joann reported declining foot traffic, shrinking margins, and mounting debt, culminating in strategic store closures aimed at long-term survival.

Key Factors Behind the Store Closures

The closure of Joann stores is not due to a single cause but a confluence of interrelated forces reshaping modern retail.

1. E-Commerce Competition and Digital Lag

One of the most significant factors is Joann’s delayed response to the digital revolution. While Michaels invested heavily in its e-commerce platform, mobile app, and buy-online-pickup-in-store (BOPIS) options, Joann struggled with outdated website functionality and inconsistent inventory tracking. A 2022 customer survey revealed that only 37% of Joann shoppers found the online experience satisfactory, compared to 68% for Michaels.

Meanwhile, platforms like Etsy, Amazon Handmade, and even TikTok shops have drawn younger crafters toward niche, independent sellers offering unique patterns, eco-friendly yarns, and personalized kits. These digital-native businesses operate with lower overhead and faster trend responsiveness than traditional chains.

2. Changing Consumer Habits

The demographic that once formed Joann’s core customer base—middle-aged and older women—is shrinking in purchasing power relative to younger generations. Millennials and Gen Z favor sustainability, minimalism, and curated experiences over bulk fabric purchases. Many now source materials through upcycling, thrift stores, or small-batch artisans rather than large retail chains.

Additionally, the post-pandemic dip in home crafting has reduced demand. During lockdowns, crafting surged as a form of stress relief and entertainment. But as life returned to normal, many casual crafters abandoned projects, leading to oversupply and decreased repeat visits.

Tip: Retailers must align product offerings with evolving values—sustainability, personalization, and community engagement—to retain younger audiences.

3. Financial Pressures and Debt Burden

In 2019, private equity firm Hellman & Friedman acquired Joann for $3.2 billion, loading the company with significant debt. While such acquisitions can fuel growth, they often require cost-cutting to meet investor returns. In Joann’s case, this meant underinvestment in technology upgrades, marketing, and store maintenance.

By 2023, Joann was spending nearly 25% of its operating income on interest payments alone. To stabilize finances, the company announced a plan to close 100 underperforming stores—primarily in low-traffic malls and rural areas—freeing up capital and reducing operational costs.

“Retailers burdened with debt after private equity buyouts often face a lose-lose scenario: cut costs and risk alienating customers, or maintain service and struggle to service debt.” — Dr. Linda Chen, Retail Economist at Wharton School

4. Real Estate and Lease Challenges

Many Joann locations are situated in aging shopping malls experiencing their own decline. As anchor tenants like Sears and JCPenney closed, foot traffic dropped, making standalone stores less viable. High rent, coupled with inflexible lease terms, made relocation difficult.

The company is now focusing on relocating key stores to power centers or standalone buildings with better visibility and parking—strategies that improve accessibility but require upfront investment.

A Closer Look: Case Study of the Dayton, Ohio Closure

In early 2023, Joann closed its store in the Miamisburg Mall, a regional shopping center outside Dayton. Once a bustling hub, the mall had lost over 40% of its foot traffic since 2018. Despite hosting seasonal events and offering senior discounts, the Joann location saw sales drop by 31% year-over-year.

Employees reported outdated fixtures, spotty Wi-Fi, and limited staff training on digital ordering systems. Meanwhile, a local craft collective opened an online store featuring locally sourced wool and embroidery kits, gaining traction on Instagram and shipping nationwide with lower overhead.

The closure affected 14 employees and left nearby crafters without a physical store within 15 miles. Some shifted to online orders, while others expressed frustration at the loss of tactile shopping—being able to feel fabric weight and color accuracy before buying.

What Joann Is Doing to Survive

Joann isn’t disappearing entirely. The company is undergoing a strategic turnaround focused on three pillars: digital transformation, customer experience, and targeted store optimization.

• Revamping its e-commerce site with improved search, filters, and mobile compatibility
• Launching a new loyalty program with personalized offers and birthday rewards
• Introducing “Craft Cafés” in select stores—a space where customers can attend workshops, sip coffee, and socialize while crafting
• Expanding private-label brands like Anaconda and Recollections to boost margins

However, success depends on execution. Unlike Michaels, which has a well-established classroom model and robust vendor partnerships, Joann’s experiential initiatives are still in pilot phases.

Comparison: Joann vs. Michaels – Where They Diverge

Factor	Joann	Michaels
E-Commerce Readiness	Limited BOPIS; slow delivery	Fast shipping; seamless pickup
Loyalty Program	Basic rewards (MyRewards)	Robust (Makers Club with tiers)
In-Store Experience	Traditional layout; few events	Classrooms; frequent workshops
Debt Load	High (post-acquisition)	Low (publicly traded, stable)
Digital Marketing	Minimal social media presence	Active on TikTok, YouTube, Pinterest

How Craft Enthusiasts Can Adapt

For regular crafters affected by store closures, adapting doesn’t mean giving up. It means rethinking how and where to source materials and inspiration.

Tip: Join local crafting groups on Facebook or Meetup to share resources, swap materials, and discover pop-up markets.

Checklist: Navigating the New Crafting Landscape

1. Identify your nearest remaining Joann or alternative craft store
2. Explore online marketplaces like Etsy, FatQuarterShop, or Hawthorne Supply Co.
3. Subscribe to crafting subscription boxes for curated monthly deliveries
4. Attend virtual workshops via Zoom or Skillshare
5. Support local artisans at farmers’ markets or craft fairs
6. Use apps like Ravelry (for knitters) or Seamly (for sewers) to track projects and find patterns

Frequently Asked Questions

Will Joann go out of business completely?

No, Joann does not plan to shut down entirely. While it is closing underperforming stores, the company remains operational and is investing in digital channels and store improvements to remain competitive.

Are Joann coupons still valid after a store closes?

Yes, promotional coupons and gift cards can typically be used at any remaining Joann location or online at joann.com. Customers are advised to check expiration dates and terms on the official website.

Is there a way to bring back a closed Joann store?

Not directly. Store reopenings depend on corporate strategy, real estate availability, and projected demand. However, community petitions and demonstrated local support may influence future decisions.

Conclusion: The Future of Craft Retail

The closure of Joann stores reflects a pivotal moment in retail evolution—one where legacy chains must innovate rapidly or risk irrelevance. While nostalgia for the fabric aisle and in-person classes runs deep, the future belongs to omnichannel experiences, community-driven spaces, and agile business models.

For Joann, survival hinges on more than cutting costs. It requires rebuilding trust, embracing digital fluency, and reimagining what a craft store can be in the 21st century. For consumers, the shift opens doors to more diverse, sustainable, and connected ways to create.

💬 What does your ideal craft store look like? Share your vision—whether it’s high-tech, hyper-local, or community-powered—and help shape the future of crafting culture.