We are not even through our first year of the new decade, and already, significant shifts are occurring in the retail business landscape. Some examples can be seen in at least three permanent closures for Joann Fabrics Stores Closing stores may be symptomatic of the future. After news broke that Joann Fabrics filed for bankruptcy last year and subsequently closed stores in 2025, it can be seen that the company is experiencing those same struggles many others in the industry are facing. This trend poses some interesting lessons for marketing in 2025—especially for small businesses and those using digital strategies to stay afloat.
Joann Fabrics Stores Troubles
In early 2025, Joann Fabrics Stores announced the closing of three stores in different states. The first to close is the Hermitage, Pennsylvania location, set to close on January 19th. As the closing date approaches, shoppers can snag up to 75% off on remaining stock, a common sale for closing stores. This is a huge loss for the local community because that is just one less place to shop for fabric and craft supplies. Still, there are two other JOANN locations here in Boardman and Niles, Ohio, and they will continue their crafting adventures.
The next store slated for closure is Burlington, Iowa. It will be shut down on January 19th. Apparently, the decision had been communicated last October, blindsiding the employees, who were initially led to believe that no stores would be closed after the announcement of bankruptcy. This is just another chapter in the ongoing saga for JOANN in trying to stabilize and grow amidst a changing retail environment.
Finally, the Ludlow, Massachusetts location is closing an hour early on January 12th. For the community around Ludlow, this was the only local venue where individuals could buy fabric and other crafting materials. Despite the loss, JOANN promises customers that they can still meet all their Ludlow needs in-store at its other location, as well as online through the website JOANN.com.
The Bigger Picture: Struggling Retail Sector
These are not isolated incidents. There are similar stories at most brick-and-mortar stores in the new retail landscape. It seems that the wave of store closures started from Party City and spread to Walgreens across industries. Even well-known companies like Big Lots and Macy’s have to reduce their locations to stay in business.
Online retailing also increased during this period, and disposable incomes were generally down, making it tough for physical stores to retain their market shares. Increasingly, consumers find it more convenient to buy products online. That makes it extremely difficult for physical stores to compete, even for non-essential products like party supplies or craft materials.
Joann Fabrics Store’s Try at Resilience
Despite all these hurdles, there do seem to be some efforts JOANN is making towards staying afloat. The bankruptcy filing in its Chapter 11 in 2024 saw a significant debt component being written out. The operations, however, remain weak, considering the decreasing income as post-pandemic sales normalize.
Interestingly, Fox Business named JOANN one of the winners of 2024, based on its ability to shed debt and manage its financial restructuring. However, given the continued store closures and decreased customer traffic, it is hard to say whether JOANN is out of the woods. In fact, many would argue that they are still on a tough road ahead.
What’s Next for Retail?
With Joann Fabrics Stores Closing and other companies pointing to a larger trend in the retail world, many long-established brands are finding it increasingly difficult to adapt to a new era dominated by online shopping.
But does this mean retail stores are doomed in 2025? Absolutely not!
Scaling your Retail business
Let’s talk about scaling your retail business—because, believe it or not, it’s not just about getting more customers; it’s about getting them the right way.
Take Walmart, for example. There is no surprise that people are running to the stores offering savings and convenience in today’s era of increasing costs. Today, Walmart is America’s largest grocer, partly because of significant growth stemming not only from the low price for which the store is so known but also from a significant emphasis on experience that the firm shows to the customers. This means making it easy to shop and streamlining its online experience. It may provide delivery or cutting-edge use of technologies, such as drones.
But how can that apply to your retail business? Well, for Walmart, the secret lies in knowing their audience inside out and providing them with solutions that would keep them coming back. It has mastered the art of drawing in all the different income groups. From middle America to rich shoppers, as it caters to all kinds of budgets. They have done this with a combination of technology, large-scale distribution, and a customer-first mindset.
What Retail Stores Can Learn from Walmart’s Success
You don’t have to have a budget like Walmart to scale your business, but you can learn from their strategies:
1. Technology: In terms of integration with the internet and robotics, Walmart gives clients a seamless experience. Such technologies as automated inventory systems, online ordering platforms, and robots to restock an inventory increase operational efficiency and client satisfaction.
2. Target a Wider Segment: The fact that Walmart can attract middle-class and high-end shoppers indicates that it is possible to target diverse customer segments. Retailers can implement pricing strategies that appeal to a wider segment of shoppers, creating an inclusive experience for all.
3. Offer convenience: Retailers can implement delivery solutions that offer speed and reliability, making it easier for customers to shop with them.
4. Build loyalty: Walmart doesn’t sell groceries; it makes people walk through every aisle. It’s a matter of getting them in the door and getting them to buy more.
It’s all about adapting to customer needs while continuously improving your operations. Scaling doesn’t happen overnight, but by using tech, offering convenience, and creating loyalty, you’ll be on the path to growing your business just like the big guys!
Joann’s downfall stems from rising debt, declining customer service, and losing market share to competitors, weakening store standards, and reducing customer loyalty.
Scaling a retail store involves using technology, offering convenience, targeting wider customer segments, providing loyalty programs, and enhancing the customer experience to drive long-term growth.
The 4 P’s of retail are Product, Price, Place, and Promotion, which guide how retailers deliver value, attract customers, set competitive pricing, and communicate their offerings effectively.
