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After a decade, Joann Stores is once again going public. Expected valuation? Up to $400 million.
Crafting a profitable business: Joann has capitalized on pandemic DIY trends, like making custom masks and stay-at-home arts and crafts.
- Joann has more than 69 million “addressable” customers, eight million of whom have been added since Feb. 1, 2020, per its S-1 filing. Comparable sales have risen 38% since last May. Joann also added ~4,000 jobs since the outset of the pandemic.
- Many new customers are younger and buying sewing machines or materials for the first time. The company estimates the average customer will spend more than $500 within a year of purchasing a machine.
Through the end of last October, 49% of Joann’s sales came from sewing. That’s about a third of the sewing industry’s market share.
Our takeaway: Joann’s IPO is another signal that the DIY and home improvement market is gaining ground. A Technavio report projects it will exceed $680 billion in annual revenue by 2025—up from $580 billion in 2016.