Dive Brief:

• Arts and crafts retailer Joann is launching a new brand campaign. The company said Thursday that its “Jo-And” rebranding will leverage influencer relationships, social media and commercial spots to highlight the joy in the experience of connecting with others through hands-on creativity.
• “We are focusing on introducing Gen Z and others to our brand as a one-stop source for all of the tools and inspiration for crafting, sewing, and personalization. We also know this generation very much values the self-expression, connections with others and mental benefits that come with creating,” Chief Customer Officer Chris DiTullio told Retail Dive in an email.
• The rebrand comes about three months after Joann filed for Chapter 11. As part of its restructuring, the company shed about $505 million in debt. It’s now operating under an interim CEO with a new board of directors as a privately-held company that’s owned by its creditors.

Dive Insight:

A focus on younger customers is at the heart of the retailer’s rebranding effort.

DiTullio and Chief Financial Officer Scott Sekella jointly led Joann’s office of CEO on an interim basis for about a year, including through the company’s bankruptcy. They stepped back into their previous roles with the appointment of interim CEO Michael Prendergast in June.

Neil Saunders, managing director of GlobalData, said Joann’s strategy of highlighting the happiness of creating campaign is the right focus. “The number of people undertaking crafting has declined over recent years since the pandemic, so trying to boost participation is helpful.,” Saunders said in emailed comments.

At the height of the pandemic about four years ago, interest in crafting surged — then sank — as stay at home and work from home orders ended. Competition from rivals like Hobby Lobby and Michaels, which also made a wave of price cuts across its assortment, also affected Joann’s performance.

Last month, Joann said it would permanently mark down 15,000 items, including yarn, fabric, craft items and home decor. Overall, the company said it has over 100,000 SKUs across fabric, sewing, craft, needle arts, home décor, kids, paper craft, craft technology and painting supplies.

When asked if the company expects the campaign to drive people to shop in-store, online or both, DiTullio said Joann wants “to meet customers wherever they are and however they prefer to shop with us. While Joann’s e-commerce business continues to grow, we also know customers love to come in store to experience our assortment, find inspiration, and connect with our team members and one another,” DiTullio said.

Looking ahead, Saunders said Joann should broaden its revamp to succeed. “While marketing is an important ingredient, there are other things Joann needs to be doing including investing in stores and improving ranges. Only a multi-pronged approach can get Joann back on track.”