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Business

JOANN’s Crafty IPO

Source: https://insights.consumer-edge.com/2021/02/joanns-crafty-ipo/

With the COVID-19 pandemic leaving most shoppers sheltered in place, many Americans have turned to crafting to pass the time. JOANN is taking advantage of this fad to launch an IPO, but will the glitter of crafting stay glued once consumers are able to leave the house? In today’s Insight Flash, we examine JOANN’s prospects vs. other craft destinations based on overall growth, new customer acquisition, and demographics.

CE Capture of JOANN Sales:

In general, Arts & Crafts spend growth has lagged the broader Sporting Goods, Hobby, Toys and Games industry since the beginning of last year as pandemic trends have driven shoppers towards more outdoor pursuits. Yet, JOANN spend growth, negative at the beginning of 2019, began to outpace overall Arts & Crafts at the beginning of the pandemic. In April, spend was up 11% y/y for JOANN and down -55% for the Arts & Crafts subindustry overall. Growth peaked for JOANN in July at 51%, but has stayed strongly in the 15-25% range for the balance of the year. Competitors such as Michaels and Hobby Lobby didn’t see as strong of an initial bump, but did manage to accelerate to double-digit spend growth for much of the second half of 2020. Blick started slower but has since begun to outpace JOANN in growth, while DTC Cricut leads the subindustry with growth that has accelerated from already strong pre-pandemic levels.

Arts & Crafts Spend Growth

All of the top Arts & Crafts brands saw an influx of new pandemic shoppers in April, with new shopper percentages rising from the first three months of the year. Blick has led the group in capturing new shoppers. JOANN is in second place though, with a strong ability to drive new spend and at least 20% of sales coming from new shoppers in every month of 2020.

New Shopper Mix

JOANN holds a unique demographic positioning among its competitive set. Its shoppers skew older than other Arts & Crafts brands, but also shoulder income levels with skews at both the low end and the high end of consumer income. Given the mix, the low-end spenders may be retirees relying on savings. Cricut and Hobby Lobby also skew lower income, although Cricut has a very strong age concentration in 25-44 year olds. Blick skews higher income and also younger, as does Michaels, although to a lesser extent.

Demographics

Note: Shoppers in each demographic who made at least one purchase 01/01/2020-01/31/2021.

To learn more about the data behind this article and what Consumer Edge Research has to offer, visit www.consumer-edge.com.

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ForwardKeys is one of the leading travel analytics firms that provides investment firms with alternative and predictive data on the travel industry. Data is offered both on the demand and the offer-side of the aviation market.

Actual Air Reservations is an aggregation of flight bookings made via the Global Distribution Systems. Exclusive agreements make that global travel data is available, including regions that are generally difficult to track. This data contains valuable insights into the profile, behaviour, and impact of events on past, present and future air travellers.

Seat Capacity provides insights into the scheduled flights from 99% of global commercial airlines.

Financial institutions use this data for artificial intelligence and predictive models to forecast the performances of businesses. Combined, the datasets can provide insights into the financial health of businesses operating in the travel and tourism industry. This list contains companies like airlines, airplane leasing companies, oil companies, hotels and travel agencies.