Third-Quarter Sales Surge At Michaels

By Jennifer Lynn, contributing writer

North America’s largest specialty retailer of arts and crafts leverages just-in-time inventory, digital initiatives

Michaels, the first national craft store to carry the season's hottest kids' trend — the Rainbow Loom — reported its third-quarter financial results Tuesday, Dec 10. For the quarter ending Nov. 2, Michael’s reports comparable sales increases of nearly 8 percent, the largest the retailer has seen since 2005. Gross profits climbed to $402 million, up nearly 13 percent against the same time frame of 2012, due to improved margins.

Much of the credit goes to the Rainbow Loom. This popular kids’ item launched in select Michael’s stores in August and has been one of the company’s best-selling items. According to Michael’s CEO, Carl Rubin, two-thirds of the retailer’s same-store sales increased can be credited to the Rainbow Loom bracelet-making kit. “Rainbow Loom has allowed us to increase our organizational agility to identify great trends, execute just-in-time inventory, employ more immediate marketing tactics, and establish strong store presentations,” says Rubin.

Read more: Inventory Management Solutions For The Retail Industry

Also fueling growth at Michael’s were digital initiatives. The arts and crafts retailer partnered with Pinterest earlier this year in an effort to expand its online reach by hosting Pinterest-inspired parties. These Pinterest parties were hosted at all Michael’s locations throughout the U.S. and Canada, with the exception of Quebec. “We have tapped into our blogger relations team and we are working with over 20 top craft bloggers across the U.S,” says Robert Freeman, director of digital and social media for Michael’s. “We view this as a way for the bloggers to meet their followers and a way for Michaels to leverage their loyal fan bases.”

Want to publish your opinion?
Contact us to become part of our Editorial Community.