Dive Brief:
- Michaels on Thursday announced that it has lowered prices on over 5,000 products across categories including arts, crafts, DIY and home decor, according to a company press release.
- Prices on frequently purchased items including paint, markers and pens have been reduced up to 15%, papers and stickers up to 20%, canvases up to 35% and T-shirts up to 40%, among other reductions.
- The price drops are being promoted through in-store signage, advertisements and emails to customers.
Dive Insight:
Michaels is dropping prices to 2019 levels or lower at a time when customers are looking for deals, according to the company.
“It’s more important than ever to deliver exceptional value for every customer looking to stretch their dollar,” CEO Ashley Buchanan said in a statement. “By lowering prices on thousands of our most popular items, we’re making creativity more affordable and giving our customers even more reasons to choose Michaels.”
The move comes amid a transformation at the arts and crafts retailer. It recently announced its first brand campaign for MakerPlace by Michaels, an Etsy rival that launched in November, along with an in-store pilot of the marketplace. The company also introduced birthday party planning services in the U.S. for children ages 4 to 13.
At the start of March, Michaels revealed plans to expand its assortment and distribution of fabric to hundreds of stores, possibly as a way to gain market share as rival craft retailer Joann goes through a Chapter 11 bankruptcy.
Michaels in April received an upgrade from S&P Global Ratings to B- from CCC+ due to improvements in operating margin and cash generation. Michaels has also enhanced store operations and improved the drag of promotions on profitability, per S&P.
A number of other brands and retailers have recently retooled their pricing strategies. Last year, At Home enacted permanent price drops on thousands of products after supply chain expenses lowered. In November, Ikea cut the cost of hundreds of items. Earlier this week, DTC brand Fly by Jing lowered its prices as it expanded into over 2,000 Walmart stores.
