COMMENTARY: WHAT IS HAPPENING
TO "CRAFTS"?
First, I apologize to all of you who tried to access this site
late last week. Server problems .... These infernal computers do
drive us crazy, don't they?
Second, the most unusual news in this issue is ... I'm at a loss for
words. The news that Crafts magazine is changing its name to Paper
Crafts really struck home with me. Probably because I once
worked across the aisle from the Crafts editorial staff when
the magazine was only a year old, I've always considered Crafts
to be the flagship of general craft magazines. Now it won't be a
"craft" magazine anymore. Or is it?
I have a gut feeling that this industry is losing its core. But what
is the core, anyway?
I don't know if changing Crafts' focus is a good decision,
but I have a sense that it is significant; somehow it's a sign of
who we are as an industry and where we're going.
My head has been spinning ever since I heard the news, but my
thoughts still haven't coalesced into a unified theme yet. I've
finally given up and just listed my disparate ideas in my
"Business-Wise" column. I've also sought the opinions of a
variety of industry pros whose opinions I respect. Their analyses
are below and in the "Kate" and "Benny" columns.
Finally, I invite all of you to send me your thoughts. Time will
tell if the Crafts staff made a good decision. I'm more
interested in questions such as: What IS crafts, anyway? Are we
losing our core, or is the core simply changing? Long term, are the
changes for the better or worse? Call me at 309-925-5593 or send
emails to mike@clnonline.com.
NEW COLUMNS THIS ISSUE
Business-Wise. The
industry is changing, as usual. But are there fundamental
changes happening? Read why Mike is more confused than usual.
Kate's Collage. When
does a craft store stop being a craft store?
"Benny Da Buyer". A
chain buyer's view of "crafts." He and his cohorts
disagree.
A.C. MOORE PROFITS JUMP
Net income for the third quarter ended Sept. 30 jumped 48% to
$1.26 million ($0.06/fully diluted share). Sales grew 10% to $98.6
million, a record, and same-store sales rose 2% For the first three
quarters, sales are up 10% to $284.2 million and same-store sales
are up 1%. Net income is $2.73 million ($0.14), up 17.7%. Officials
re-confirmed their forecast for the full year to be at the high end
of the $0.84 to $0.88/share range. The current store count is 79.
CRAFTS MAGAZINE CHANGES FOCUS
Crafts magazine is becoming Paper Crafts magazine.
The 25 year-old magazine, which has long been the circulation
leader, or among the leaders, of the general craft consumer
magazines, will hit the newsstands as Paper Crafts in
December. The magazine, which was re-designed in 2002, will be
published eight times a year and cost $15.97 for a subscription.
According to a press release, "a recent survey of Crafts'
readers found that paper crafting holds a strong and growing
attraction for readers who enjoy craft projects such as handmade
cards, scrapbooking, and rubber stamping." The change is part
of a trend away from general magazines with "crafts" in
the title. Craftworks for the Home had already changed its
name to Create & Decorate, and Creative Crafter,
which was originally Quick & Easy Crafts, is reportedly
also changing its focus to papercrafting next spring.
To CLN's knowledge, that leaves only Crafts 'N Things
as a general craft magazine. The Paper Crafts circulation
base will be 175,000. For subscription info, call 800-727-2387 or
visit www.papercraftsmag.com.
MICHAELS EXPANDS RECOLLECTIONS
Michaels opened its second ReCollections scrapbook store
Oct. 10 in the Old Town Shopping Center in Dallas. The grand opening
included a variety of special events, including in-store appearances
and class instruction by Anna Griffin (Anna Griffin Designs),
Heidi Swapp (Making Memories), and Sharon Soneff (creator of
the Sonnets product line).
Execs also announced plans to expand the concept in the Dallas,
Phoenix, Atlanta, and metro-Washington, D.C. markets. Sr. VP of New
Ventures Sam Crowley said, "So far, ReCollections has
proven to be a great concept, and, given our early success, we are
planning to open another 10 stores in the coming year."
A Michaels exec told the Dallas Morning News the company
believes it can build 200 or more ReCollections stores.
ReCollections stores offer approximately 10,000 SKUs, many
more than a typical Michaels. Items of local interest, such as
school and team logos and colors are also offered. The two ReCollections
stores each feature two classrooms and an ongoing, open crop area.
Execs say the stores will offer in-depth, one-on-one customer
service, hourly demos, a cutting-edge technical support center, and
employees who are experienced scrapbookers.
"There is a large segment of scrapbookers who want more rapidly
changing assortments, more personalized service, and broader
selections than a traditional craft store provides," Crowley
added. "... this venture is a natural fit given our expertise
in memory preservation, and we're looking forward to developing long-term,
successful partnerships within the national scrapbooking
community."
JO-ANN'S EXPANDS IN MICHAELS'
BACKYARD
The Dallas Morning News published a major feature story
regarding Jo-Ann's new stores in the Dallas area. Among items
of interest:
Sales. Jo-Ann's average "ticket" in a superstore is
50% higher than in a traditional store. The 35,000 sq. ft.
superstores do 3-4 times the volume of a traditional store.
Media. Jo-Ann's commissioned Meredith to create a Jo-Ann-branded
line of proprietary craft books ... The Better Homes & Gardens
Special Interest Division at Meredith has grown from the smallest
division of the publishing giant to its second largest profit
center. Its Scrapbook, etc. started as a single, special
interest issue and has been converted a magazine with a circulation
of 325,000.
Products. Scrapbooking sales are estimated around $3 billion
..."Wedding crafts may be the next big thing in the industry,
as paper-making and other techniques spill over from scrapbooking,"
wrote the News.
Quotes, I. "We believe the same creative customer
migrates back and forth between textile and non-textile
projects." ... "Our strategy is to literally transform the
company by converting our smaller stores into competitive craft and
sewing superstores." Chair/CEO Alan Rosskamm.
Quotes, II. Jo-Ann's "has been on the fringes of the
craft business for years. But now that they've opened their expanded
craft stores in Dallas, we'll be able to watch them more
closely." Michaels President Ron Staffieri.
ACCI, HIA ELECT NEW OFFICERS
(Note: If you're wondering why ACCI and HIA are electing
officers if they're going to merge into the Craft & Hobby
Association, it's because the merger, while on track, is not a done
deal. Consequently, each organization is operating as if it's still
business as usual.)
ACCI. Jim Scatena (FloraCraft), Chair ... Emma Gebbo (Crafts
& Frames), 1st Vice Chair ... Mike Hartnett (Creative
Leisure News), 2nd Vice Chair ... Craig Zimmerman (Zim's),
Secretary ... Marla O'Dell (Syndicate Sales), Treasurer.
HIA. James Bremer (Tall Mouse), President ... Dave
Bolen (Jo-Ann's), VP/Marketing & Public Relations ...
Jane Anne Davis (Duncan), VP/Member Programs and Services ...
Ron LaRosa (Delta), VP/Finance ... Mike McCooey (Plaid),
VP/Trade Show & New Business Development.
If the merger occurs, these officers serve on the Governance
Committee for one year.
SEPTEMBER CHAIN SALES: OK
Overall, the U.S. retail industry enjoyed its biggest monthly
sales gain in 18 months, thanks to cooler weather which allowed
retailers to sell more apparel at a better margin, Reuters reported.
Sales in craft-related chains did not fare quite as well.
Michaels' overall sales rose 6% to $312.7 million and
same-store sales rose 1%. Customer traffic dipped 1%, but the
average ticket rose 2%. CEO Michael Rouleau said the best results
were in the Southeast, Northeast, and Pacific zones; apparel, kids,
frames, floral, and seasonal were the strongest departments. Execs
expect same-store sales for October to be up 2-4%, and maintained
their forecast of diluted share earnings of $0.46-$0.50 for the
quarter and $2.40-$2.45 for the year.
Jo-Ann's sales increased 3.5% to $165.2 million and same-store
sales rose 3.3%. Year-to-date sales are up 2.5% to $1.022 billion
and same-store sales are up 3.4%.
Hancock's sales rose 1% to $43.7 million and same-store sales
increased 0.5%. Year-to-date, sales have risen 2.7% to $278.0
million and same-store sales are up 2.9%.
Wal-Mart's sales in its Stores division (domestic Wal-Marts
and Supercenters) rose 5.6% and the company reported October sales
were going well. It now employs about 1.1 million people in the U.S.
Duckwall-ALCO's same-store sales rose 3.7%, and for the first
time in months, listed crafts as one of its departments that was
"particularly strong."
Reminder: A.C. Moore reports quarterly, not monthly sales
figures (see above).
PREPARING FOR 2004
ACCI is accepting booth reservations for its 2004 trade
show, scheduled for July 16-18. "It's important for companies
to understand that this summer show will continue in Chicago
(Rosemont) -- whether or not the proposed associations' merger goes
through," says Marrijane Jones, ACCI's executive director.
November 1 is the deadline for 2003 exhibitors to reserve previous
space. Prices will remain the same as this year. ACCI members enjoy
savings on exhibit fees. Vendors paying their 2004 ACCI dues can
exhibit for $150, plus the booth cost; non-members pay $250.
"If the merger goes through during 2004 and ACCI joins with HIA,
ACCI membership fees will be refunded to members of the new
association," explains Jones.
The deadline for applications for Mega sessions is Dec. 31,
and for technique classes Jan. 31. Booth contracts and Mega
session and technique class applications can be obtained by
downloading them at www.accicrafts.org;
by calling 888-360-2224 or 740-452-4541; or by emailing accishow@offinger.com.
WHY IS CRAFTS CHANGING?
AN ANALYSIS
(Note: One of the most media savvy people in our industry
is Lynn Carlisle of Carlisle Communications. We asked her
about Crafts magazine changing its focus. Was it an example
of how the industry may be losing its "core", or does it
mean something else?)
I suspect if you polled retailers, they'd argue that while their
paper and scrapbooking aisles are doing well, many other categories
are equally strong.
It's more a publishing phenomenon than an industry phenomenon -- and
a reflection of the huge numbers of papercraft vendors vs. other
categories. Perhaps it's because the barriers to entry as a paper
supplier are much lower than for a paint or floral or yarn supplier.
But the proliferation of papercrafting sources has created an
explosion of the pool of advertisers to support a magazine of this
type.
Years ago, general craft magazines showed us studies indicating that
more than 50% of their readers did cross stitch. But that didn't
induce the publishers to change their focus to cross stitch. Why?
Because there are only a handful of cross-stitch vendors with ad
dollars to spend. Now, Crafts magazine says 71% of readers
have made a greeting card during the past year. Would that figure
alone induce a publisher to shift entirely to papercrafts? No. Not
unless there is an advertiser base to support it. And with paper,
there is.
This publishing phenomenon is splintering the general markets into
more niche titles that can better compete for advertising dollars,
and, they would argue, deliver a more targeted audience for the
advertiser.
I don't think we'll ever see a magazine landscape that doesn't
include general crafts magazines that cover crochet, sewing, fabric
painting, knitting, needlework, stamping, home dec, and yes,
papercrafting. We assume that the general craft magazine reader is a
cross-over crafter who fits the demographic of someone who does far
more than one type of craft.
Perhaps the question isn't, "Are we a crafts industry
anymore?" Perhaps it's, "Are our customers more niche
crafters now who want greater depth and variety in magazines that
are focused on their vertical areas of interest?"
Bottom line: If you ask a papercrafter if she "does
crafts," I suspect she'll say "yes." If you asked a
knitter, I suspect she'd say "no." But will she go to a
store called Michaels, Jo-Ann's, Rag Shops, or A.C.
Moore to buy yarn? Sure.
(Note: Lynn does consulting/p.r./Internet work for a number
of craft clients. To contact her, email ljc@carlislecommunications.com
or call 252-752-9426.)
CRAFT & NICHE
MAGAZINES/STORES: A PLACE FOR ALL
(Note: CLN asked Marie Clapper, publisher of Clapper
Communications and Crafts 'N Things magazine, to comment
on the recent changes in our industry's magazines.)
As two magazines leave the general crafts arena and head for a
niche, people wonder, "What's the future of general
crafts?" As publisher of Crafts 'n Things , a magazine
offering a complete array of crafts, I'd like to share three
thoughts with you:
1. To a trade show exhibitor, General Crafts is an exclusive term.
To a crafter, it's inclusive. Exhibitors must choose from five
categories for booth placement: art materials, needlecrafts, florals,
scrapbooks, or general. Since exhibits are allowed only in one
chosen category, it's an exclusive selection -- forsaking all
others.
For consumers, the label is inclusive. General crafters (and general
craft magazines) stencil, cross-stitch, enjoy florals, scrapbook,
and experience many different handicrafts. For crafters and
publishers, General Crafts is a big, beautiful umbrella -- embracing
an assortment of techniques.
2. Three types of crafters will always seek general crafts: the novice,
the maven, and the purposeful.
The novice is just starting out and so explores all her
crafting options. She wants to see the entire banquet table and
sample its many delights.
The maven can't know enough about the love of her life:
crafting. Techniques, products, what's new -- she wants it all!
Despite her personal favorite, she delights in the full spectrum.
Quilts, painted walls, altered book displays -- her home is a
veritable endorsement of the crafting lifestyle.
The purposeful crafter has a mission. Whether it's gifts,
holiday decorating, or home dec, she knows one single technique
simply doesn't cut it. One craft does not fit all. Each gift choice
is driven by the needs of the recipient, not the craft. The same is
true of her home and her holiday decorating -- spawned by what's
needed, fulfilled through a variety of techniques. Only a general
craft store or a general craft magazine can satisfy her.
3. Success requires focus. Niche focus is one way to achieve it,
obviously. Customer focus is another.
A single-subject store (or magazine) is one route to take. Another
is getting close to your customer, meeting her needs, connecting
with her emotionally. Either way, focus must partner with true
leadership in order to succeed.
From my vantage point, the future of crafts is exciting. I wish the
best to those who have chosen a single path, a niche. And to those
of us who continue offering consumers a complete craft selection?
Stay the course. Enjoy the ride. I say the best is yet to come.
MORE THOUGHTS ON
"CRAFTS"
From Janet Parker of A.C. Moore: I think we have slowly
begun to turn away from our core business and roots to a certain
extent. This is a fascinating and creative business, and I felt that
we were becoming too "pretty" in our stores. We need to
inspire our customers and continue to show the many uses for the
products that we sell in our stores and in the industry.
I do believe that we still need some of the fringe merchandise,
however our team members and our customers want -- but more
importantly expect -- us to be a craft store.
From Mark Hill of Westrim: In many ways the industry has
evolved to one that appeals to consumers in search of creative
expression, whether in fabric crafts, home decor, paper crafting,
etc. The word "create" or "creativity" when
accompanying images of finished craft projects perhaps has the
widest consumer appeal, hence the magazine industry's shift in
titles.
I doubt this change will lose any of the core craft market, but it
may broaden the market potential. Certainly paper crafting is very
popular and continues to emerge as a major category, as memory
crafting, collage, stamping, altered books and decoupage all
continue to grow.
RANDOM NOTES, RANDOM THOUGHTS
1. During the recent campaign you probably heard companies
complain about how difficult it is to operate a business in
California. Here are two examples from our industry: A) A
state inspector showed up, unannounced. He counted the cars in the
parking lot, counted the number of employees, and fined the company
for not doing enough to encourage car pooling. B) A secretary
is suing for workman's compensation and the company's lawyers told
the owner not to bother contesting it. Her complaint? She had to sit
all day.
2. Most manufacturers miss a HUGE opportunity to improve
their business by not attending the annual conference sponsored by
the Society of Craft Designers. It was held two weeks ago in
St. Louis and one afternoon I watched as a major manufacturer, there
for the first time, was escorted around the Designer Showcase room
by Lynda Musante (Nifty Development Corp.). It was an eye
opener for the supplier; he found new uses for his products,
realized his product could have been used in place of other products
in numerous projects, met wonderfully talented freelance designers,
etc. "I'm embarrassed I've been in the industry this long and
never attended this conference before," he said.
Mark your calendars: The next SCD Conference is in Albuquerque,
Sept. 8-11. Call 740-452-4541 or visit www.craftdesigners.org
for more info on this wonderful organization.
MISCELLANEOUS NEWS
CHRISTMAS. The latest survey of consumers' holiday
shopping plans indicates it might not be such a great Christmas for
retailers. The market research firm NPD Group found that 68% of U.S.
consumers plan to spend as much as last year, but no more. A mere
13% will spend more, but 19% will spend less.
MEMORYTRENDS. The Craftrends-sponsored Las Vegas show
broke records for attendees (up 76%), exhibitors (up 52%), and
booths (up 74%). 80+% of the classes sold out. Next year's dates are
Sept. 28-30 at the Sands Convention Center in Las Vegas. The
exhibitor prospectus will be mailed in mid-February, with buyer
registration beginning in late spring.
MEMORY, I. Attendance at the recent Orlando Memory Expo
was up 50% to 9,939, including scrappers from 26 states, Puerto
Rico, and seven countries. Exhibitor numbers were up, too -- 110 in
203 booths. 101 of 127 classes sold out, and 750 attended evening
scrapping parties. The 2004 Expos are in Las Vegas, Mar. 5-6;
Chicago, Apr. 2-3; New Jersey, Apr. 30-May 1; and Orlando, Oct. 7-9.
Visit www.memoriesexpo.com,
email memories@offinger.com,
or call 740-452-4541.
MEMORY, II. A survey of Orlando Expo attendees
revealed: 45% said shopping/see new products was their top priority;
35% said classes ... The most sought-after products were
embellishments (77%); papers (60%); and tools (60%) ... 65% spent
$100 - $500 each purchasing exhibitors' products ... 58+% had not
attended another scrapbooking event or show within the past year.
INRG. The Int. Needleart Retailers Guild signed a
contract for the management of INRG by Offinger Management.
Offinger already manages such groups as the Assn. of Crafts &
Creative Industries, the Society of Craft Designers, The
National Needlework Assn. (which is holding a joint show with
INRG next June), The Knitting Guild Assn., and the Crochet
Guild of America. INRG membership is open to independent
needleart retailers. Auxiliary memberships are also available to
needleart designers, distributors, sales reps, manufacturers,
publishers and teachers. Rolodex: INRG, 1100-H Brandywine
Blvd., PO Box 3388, Zanesville, OH 43702-3388. Call 740-452-4541;
fax 740-452-2552; email inrg@offinger.com;
visit www.stitching.com/inrg.
YARN. A record 21,000 people attended the Craft Yarn
Council of America's fifth annual Knit-Out and Crochet
event in Manhattan, reported the Dallas Morning News.
HIA. For exhibitors: For info on advertising in the 2004
HIA Show Directory, contact Beth Britt at bbritt@naylor.com
or 800-369-6220, ext. 3429 ... For info on pre-show mailings to
pre-registered attendees and shuttle-bus signage, contact Dawn
McLendon at dmclendon@aesmarketing.com
or call 800-474-6329, ext.7353 ... For all HIA members: For
info on discount travel packages (hotels, cars, planes), call 800-826-8241
or visit www.hiashow.org.
FAMILAR FACES. Former HIA exec director Pat Koziol is
the new exec director of the Radio Control Hobby Trade Assn.
... Former Ames CEO Joe Ettore has resurfaced as head of a
new discount retail chain, Wise Buys. The first store is in Canton,
NY. Others will open in smaller population areas, reported DSN
Retailing Today. (Comment: That means Joe wants to stay
away from the competition that drove Ames out of business, such as Wal-Mart.)
STOCK. Michaels repurchased an additional 265,000 shares of
the company's stock under its stock repurchase plans ... Jo-Ann's
holds a special stockholders meeting Nov. 4 to vote on a proposed
reclassification of its two classes of common shares into one voting
class.
NEEDLEWORK. TNNA is sponsoring a NeedleWork-Out on the
campus of Kent State U. on Nov. 8. The event is free and open to
students and the public. There are volunteer teachers for all
needlework techniques, but supplies are needed, particularly blank
needlepoint canvas #18 or larger (even small remnant pieces are
needed); fibers for cross stitch, embroidery, and needlepoint; and
regular and novelty yarns for knit and crochet. For info, call 330-672-0169
or 614-237-0700. Send donations (and info to distribute) to Dr.
Catherine Amoroso Leslie, Fashion Design and Merchandising, Kent
State U., 222F Rockwell Hall, Kent, OH 44242.
TV. The 5th series of Sew Young, Sew Fun, "Kids
Sew Across America," uplinks to PBS stations Dec. 14. Sponsors
include Husqvarna Viking, American Quilter's Society, Coats &
Clark, Prym/Dritz, Jo-Ann's, Primedia, Velcro, Wrights, Pfaff, and
White.
QUOTATION. "At Wal-Mart, the customer is king, everyone
else be damned: competitors, employees, and the domestic
manufacturing base. Everything Wal-Mart does -- particularly its low
prices -- is done in the name of slavish devotion to consumer
demand. And every day, millions of Americans ratify Wal-Mart's
strategy by shopping there. Stores don't kill economies, consumers
do." -- Daniel Gross, in The Slate, an online magazine.
CONDOLENCES, I. Popular industry veteran Marty Gelfand has
passed away. He'd been National Sales Manager for Darice and prior
to that, Westrim. Marty had undergone a kidney transplant after HIA
this year, receiving a kidney from his son. But complications set in
.... Memorials in Marty's name should go to the National Kidney
Foundation. Send cards to Marty's widow, Judy, at 10027 Mesquite
Fork Ct., Las Vegas, NV 89123.
CONDOLENCES, II. Our very best wishes to Shay Pendray, host
of the popular PBS needlework show, on the sudden death of her
husband, Don. Send donations in Don's memory to Detroit Public
Television, 7441 Second Ave., Detroit, MI 48202-2796.
CONDOLENCES, III. Painter Marty Bell has lost her battle with
cancer. Many of her paintings of cottages and gardens were
transformed into top-selling cross-stitch charts by Pegasus
Originals. Send memorials to Steve Bell, 17631 Prairie Street,
Northridge, CA 91325. An Internet bulletin board has been
established for Marty. Click HERE.
THE CREATIVE NETWORK: JOB
OPENINGS
To see a sampling of the current job openings and to contact The
Creative Network, click on the "Jobs" button in the left
hand column.
THE CLN RETAIL INDEX
A. C. Moore (ACMR). Last*: 23.72 ... Change**: +0.06
Hancock Fabrics (HKF). Last*: 15.79 ... Change**: -0.05
Jo-Ann Stores (JAS.A) [a]. Last*: 28.83 ... Change**: -0.38
Michaels (MIK). Last*: 46.11 ... Change**: +3.07
Rag Shops (RAGS). Last*: 4.07 ... Change**: -0.01
Wal-Mart (WMT). Last*: 58.84 ... Change**: +1.36
CLN Retail Index. Last*: 100.50 ... Change**: +2.3%
Dow Jones Index. Last*: 9,721.79 ... Change**: +1.6%
*Oct. 17 ** from Oct. 3 [a] voting share Prices are exclusive of
dividends
SONG TITLES
(Note: This was emailed from a subscriber claiming these
are responses to an invitation from New York magazine to
invent country song titles.)
"Ain't No Trash in My Trailer Since the Night I Threw You
Out"
"You Wanted To Get Hitched, but My Heart Is Filled with
Whoa"
"Baked My Sweetie a Pie, but He Left with a Tart"
"She Chews Tobacco, but She Didn't Choose Me"
"The Peach I Picked in Georgia Didn't Cling to Me for
Long"
"Don't Want That Floozy in My Jacuzzi"
"I Found the Recipe for Heartbreak in a Cookbook on Your
Shelf"
"Now That We're Miserable, I Hope You're Happy"
REMINDERS
1. For more information on how your business can be the
subject of a "Business Profile" or have products/photos
included in the "CLN's Online Product Preview, call Mike
Hartnett at 309-925-5593 or email mike@clnonline.com.
2. Paid subscribers are invited to have their website
evaluated by Lynn Carlisle of Carlisle Communications. She'll
check the site and provide a confidential assessment and suggestions
for improvement. Just email mike@clnonline.com
or ljc@carlislecommunications.com.
3. If you want a hard-copy of this issue, click on
"Printer Friendly version".
4. If your company is a paid subscriber, everyone in the main
office is welcome to register, free. Just click on "Current
Subscribers Click Here To Register."
5. If you want to recommend CLN to a friend, use the
"Tell Your Friends" box on the home page.
6. Creative Leisure News is published on the first and
third Mondays of each month. Your next issue will be Monday,
November 3.
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