American arts and crafts retailer Michaels is slashing prices to levels seen in 2019 or even lower, aiming to help customers “get more bang for their buck,” the company’s CEO announced. Michaels revealed last Thursday that it has lowered prices on over 5,000 products across multiple categories including arts, crafts, DIY, and home décor. Regularly purchased items like paint, markers, and pens have been reduced by up to 15%, paper and stickers by up to 20%, canvases by up to 35%, and T-shirts by up to 40%, with other items also seeing price cuts.
Customers were informed of these price drops through in-store signage, advertisements, and emails. CEO Ashley Buchanan stated in a release, “Providing exceptional value to each customer is more important than ever during this time. By lowering prices on thousands of our most popular products, we’re making creativity more affordable and giving our customers more reasons to choose Michaels.”
This move comes as the arts and crafts retailer undergoes a period of transformation. It recently announced its inaugural MakerPlace by Michaels brand event, a marketplace similar to Etsy set to launch in November, alongside in-store pilots. The company has also rolled out birthday party planning services for children aged 4 to 13 in the United States.
In early March, Michaels announced plans to expand its fabric offerings and distribution to hundreds of stores, potentially aiming to capture market share amidst competitor Joann’s bankruptcy filing. In April, Michaels received an upgrade from S&P Global Ratings to B- from CCC+, citing improvements in operating profit margins and cash generation. According to S&P, Michaels has also enhanced store operations, reducing the impact of promotions on profitability.
Recently, several other brands and retailers have also readjusted their pricing strategies. Last year, At Home implemented permanent price reductions on thousands of products after reducing supply chain costs. In November, IKEA lowered prices on hundreds of products. Earlier this week, DTC brand Fly by Jing reduced prices upon entering over 2,000 Walmart stores.
