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The arts and crafts sector is undergoing a major shakeup. Party City shuttered all corporate-owned stores early in the year after filing for bankruptcy, and by May, JOANN had closed its doors as well. But what could have been a moment of contraction for the largely discretionary category has instead accelerated growth for its strongest players. The industry is consolidating around two leaders – Hobby Lobby and Michaels.
What explains the continued strength of these two banners? And how are they positioning themselves to capture share in a reshaped retail landscape? We dove into the data to find out.
A Thriving Discretionary Category
Despite its discretionary nature, crafting is flourishing in 2025. Screen-fatigued consumers are embracing hands-on, mindful projects like knitting, embroidery, and DIY décor as creative outlets and stress relievers. At the same time, crafting serves a practical role, producing inexpensive gifts and home decorations that help households stretch budgets while delivering creative satisfaction.
And Hobby Lobby and Michaels are making the most of this opportunity. Since April 2025, both chains have posted consistent year-over-year (YoY) visit growth, expanding their footprints while also driving more visits to existing locations. And with JOANN and Party City out of the picture, both retailers appear poised to capture displaced demand and further cement their leadership.
An October Surprise for Michaels?
Each retailer is following a different path to success.
Michaels has leaned aggressively into the category's realignment. The company acquired JOANN's intellectual property and private-label brands to broaden its assortment and has moved quickly into Party City's vacated territory with an expanded lineup of balloons and party goods. Michaels is also doubling down on in-store experiences like birthday parties and leaning even more heavily into seasonal products – including for Halloween, Party City’s traditional stronghold.
This latter move could prove especially powerful during the upcoming spooky season. Halloween was historically Party City’s busiest period of the year, with October 2024 visits surging nearly 95% above the chain’s monthly average. With Party City gone – and Michaels already rolling out its “Summerween” offerings – the retailer looks well-positioned to capture some of that seasonal momentum and emerge as one of Halloween’s new retail destinations.
Slow and Steady Wins the Race for Hobby Lobby
Hobby Lobby, by contrast, has stuck to its proven strategy of steadily expanding a nationwide fleet of large-format stores with broad, affordable selections. And this approach continues to pay dividends.
Though Hobby Lobby doesn’t really do Halloween, it carries plenty of seasonal decorations – which have traditionally driven substantial holiday visit boosts from November (see graph above). Hobby Lobby’s immersive environment also encourages extended browsing sessions, leading to longer visits. Between May and July of this year, shoppers averaged 31.4 minutes per trip to Hobby Lobby compared to 25.5 minutes at Michaels. The chain also leads in loyalty: Over the same period, 21.5% to 23.3% of visitors shopped at Hobby Lobby at least twice per month, a significant increase from last year.
Why Are Craft Stores Thriving?
Far from being sidelined as a discretionary indulgence, crafting has become an outlet for creativity, mindfulness, and affordability – and the shakeout of weaker players has only sharpened the advantage of category leaders. With Michaels pushing boundaries through innovation and seasonal dominance, and Hobby Lobby deepening loyalty through scale and consistency, both banners are positioned to ride the craft retail wave well into the future.
For more data-driven consumer insights, visit placer.ai/anchor.
Placer.ai leverages a panel of tens of millions of devices and utilizes machine learning to make estimations for visits to locations across the US. The data is trusted by thousands of industry leaders who leverage Placer.ai for insights into foot traffic, demographic breakdowns, retail sale predictions, migration trends, site selection, and more.
