Retailers must grapple with a lot of harsh realities these days.
For one, it’s just not 2019 anymore.
Related: Popular bankrupt retail chain prepares to close all 96 stores
Try as some retailers might, we can’t bring the old times back.
Which means we’ve been in the midst of a hard adjustment period over the past several years.
We may not have realized it back then, but in 2020 when Covid struck, retail was about to seismically shift.
While many stores may have gotten away with operating like it was 1985, the pandemic suddenly exposed those who were taking creative measures to grow or adapt and those who were just puttering along.
Lots of smaller, niche, or specialized shops that relied on passive foot traffic to keep operations afloat were suddenly underwater.
Foot traffic fell to near zero overnight, and it was suddenly unprofitable to operate in even the most populous, trendy areas.
Even celebrities enjoyed stopping by a Joann store.
Image source: Getty Images
Niche retailers are struggling
When Covid finally waned and many of us began to resume our daily habits, some brick-and-mortar stores revitalized.
But those stores were typically the ones that already had strong business models or competitive moats prior to the pandemic.
More closings:
Popular Mexican chain closing all restaurants, no bankruptcyIconic mall chain shuttering more stores foreverMajor gym closing multiple locations after franchisee bankruptcyAfter Chapter 11 bankruptcy, beloved retailer closes all stores
Discount retailers like TJ Maxx, Ross, and HomeGoods were uniquely positioned to capitalize on a renewed consumer enthusiasm not just for treasure hunting, but also for deal seeking.
But niche retailers that offered specialty products or only catered to a sliver of the population struggled to find their way again.
Retailers like Joann or Party City, which had large footprints across the U.S. but only offered a particular set of inventory for niche hobbyists, found it difficult to regain their footing.
Popular retailer closing all stores
Joann, a once highly popular craft store for quilters, crafters, and other textile hobbyists, was one of the foremost victims of the fall of niche retailers.
It filed for Chapter 11 bankruptcy for the second time in January 2025 and made the difficult decision to shutter all stores.
Related: See’s Candies local rival unexpectedly closing after 50 years
Joann has already closed over 200 stores, and after a country-wide liquidation sale, it is preparing to close over 440 more stores by the end of May.
When it filed for bankruptcy in January, Joann originally planned to shutter about 500 stores and maintain some operations.
But when its assets were acquired by financial services company GA Group at auction, it made the difficult decision to close all stores and cease online operations.
Stores that are still operational are holding up to 90% off sales. All stores will close by May 31.
