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Can Gen Z Jumpstart JOANN’s Recovery? 

JOANN, which emerged from bankruptcy proceedings in late April, launched a new campaign aimed at Gen Z to tap the generation’s budding interest in sewing.

With the help of influencer relationships and social media placement geared toward younger channels, the campaign’s goal is focused “on inspiring the next generation of creators to find happiness in the experience of creating and connecting with others.”

The campaign plays off the fabric and crafts retailer name with a twist: JO-AND.


“‘And’ is a powerful 3-letter word that represents the endless possibilities of product and inspiration that customers can find at JOANN,” said Chris DiTullio, chief customer officer, in a statement.

Existing platforms will continue to be used to reach its core consumer base.

JOANN’s business boomed during the COVID-19 pandemic, as Americans used the extra time amid stay-at-home orders and the extra money from stimulus payments to delve into crafts. The bankruptcy filing arrived amid both a slowdown in discretionary spending overall and as consumers stepped back from at-home crafts, but interest from younger consumers reportedly continues.


A recent article from UCL Pi Media attributed Gen Z’s interest in knitting, crocheting, sewing, and embroidering to the generation’s growing eco-consciousness. But it also said that the generation is “obsessed with wearing one-of-a-kind clothes and having a distinctive personal style, as highlighted by the resurgence of vintage clothes.”

Influencers and social media have also given Gen Zers the opportunity to be inspired and show off their handmade creations. UCL Pi Media stated, “Social media has, if not created, a constant need to stand out and belong to a certain aesthetic community (cottagecore, mermaidcore, rockstar girlfriend…), making mass-produced fast fashion a less appealing option.”

A Los Angeles Times article from last fall cited a number of Gen Z influencers helping drive the trend while likewise calling out the generation’s passions around sustainability and seeking originality. The article stated, “In order to stand out today among the Zara- and Shein-clad masses, intrepid fashion savants are experimenting with more handmade, custom looks as vehicles of self-expression.”

JOANN officials said on an analyst call last year that it had been tapping “more sophisticated digital marketing tactics” to expand its share with 18-to-24-year-olds.

JOANN’s bankruptcy reorganization eliminated roughly $505 million in debt and allowed all 815 retail locations to remain open. 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.

Beyond its Gen Z push, JOANN’s major initiative since exiting bankruptcy was permanently reducing prices on more than 15,000 items to compete better against rivals like Hobby Lobby and Michaels as well as the big boxes.

“We are excited to bring joy to more customers than ever, particularly those younger customers who are committed to finding happiness, mental health and connections to others, all of which are benefits of creating,” said DiTullio in a statement regarding the JO-AND campaign. “Through lowering prices and investing in this awareness campaign, we want everyone to know JOANN is here and committed as ever to inspiring happiness through creativity.”

Discussion Questions

What do you think of JOANN’s “JO-AND” campaign targeting Gen Zers?

Are there strong enough drivers behind Gen Z’s interest in sewing to support a long-term trend?

Poll

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BrainTrust

"I like this for JOANN. When your core consumers are unable to keep you in business, you must find new ones."
Avatar of Carlos Arambula

Carlos Arambula

Principal, Growth Genie Partners


"In today’s world, there are too many distractions for other activities…Gen Z is a generation raised on electronic dopamine. I just don’t see crafts competing in the long term."
Avatar of Gene Detroyer

Gene Detroyer

Professor, International Business, Guizhou University of Finance & Economics and University of Sanya, China.


"Leveraging social media and influencers in ways they likely have never done may push JOANN outside their comfort zone, but it’s a necessary step…"
Avatar of Clay Parnell

Clay Parnell

President and Managing Partner