As digital fatigue deepens and “going analog” continues to trend, a growing number of people are taking up hands-on, creative hobbies.
“In 2026, creativity is no longer just self-expression — it’s self-definition,” Michaels President and Chief Customer Officer Heather Bennett said in the company’s recently released 2026 Creativity Trend Report.
“In a world that feels increasingly automated, creativity has become a natural cornerstone of the cultural return to hands-on, offline living.”
Some 71% of U.S. consumers identify as crafters, according to a November 2025 report from Digital Journal. On average, these crafters spent $3,200 on hobby and crafting supplies per year, a number that has increased by 67% since 2020.
With more than 1,300 stores nationwide, Michaels is a leader in the craft supply and hobby space.
And the chain’s new move seems to indicate that it doesn’t take that position lightly — nor is it willing to risk losing that craft-store crown to competitors like Hobby Lobby or Blick Art.
Michaels upgrades its loyalty program
In March 2026, Michaels revealed that it would relaunch and upgrade its loyalty program.
“The relaunch of our loyalty program is about recognizing and rewarding our most dedicated shoppers,” Michaels President & Chief Customer Officer Heather Bennett said in a statement.
“By introducing a new tier structure with enhanced benefits reaching up to 9% back in rewards, we’re saying thank you with more value and more inspiration for every project or celebration our customers take on.”
The new loyalty program features three tiers to reward regular shoppers:
- Red Members: Entry-level tier, shoppers earn 3% in rewards on every purchase
- Gold Members: $300 annual spend required, shoppers earn 6% in rewards on every purchase
- Platinum Members: $1,000 annual spend required, shoppers earn 9% in rewards on every purchase
Source: Michaels
Customers at every loyalty tier can also earn birthday bonuses of 30% off one item for Red members, 40% off for Gold, and 50% off for Platinum members.
Higher-tier rewards members get additional perks including:
- 20% off regular purchases for Gold members and 25% off regular purchases for Platinum members
- Exclusive first looks at new products
- Access to special Michaels events
- Free tote bags for Platinum members
Getty Images
Michaels expands its offerings
Over the last few years, Michaels has been expanding its inventory to include items beyond hot glue guns and beading kits.
In 2025, not long after Joann’s Fabrics went bankrupt and shuttered all of its existing stores, Michaels acquired its intellectual property and private-label brands.
Related: Target makes bold change to win back customers
“This acquisition allows us to better serve both new and existing customers, respond to rising demand across categories, and build on our momentum as the destination for creating and celebrating in North America,” Michaels CEO David Boone said in a statement.
Michaels’ website now has a dedicated landing page for Joanne’s customers, and many of its locations have designated Joanne’s sections where shoppers can find favorite fabrics and sewing accessories.
Similarly, when Party City and Champion Party filed for bankruptcy in 2024 and 2025, respectively, Michaels wasted no time expanding its party goods section.
More retail:
- Dollar Tree’s new pricing strategy is confusing shoppers
- Mattel contemplates future of popular dolls
- Starbucks rival launches coffee shops in cult favorite chain
The retailer unveiled 500 new party products in April 2025, with the goal of giving “customers even more ways to celebrate special moments and get everything they need in one place.”
This product expansion will certainly boost the company’s rewards program appeal, even among non-creatives.
The crafting industry has been hit hard by tariffs
Michael’s is a privately held company, owned by the private equity firm Apollo Global Management, and doesn’t publicly report earnings.
However, it seems safe to assume that revenues have taken a bit of a hit over the past year, thanks to Trump’s tariffs. Many craft items, from plastic knitting needles to printed fabrics, are produced overseas in countries like China and Mexico.
One craft store owner told Reason Magazine that 90% of her stock had been affected by tariffs.
“Every supplier I have, minus one, from major to minor, has had a price increase,” Dana Chadwell told the outlet in December 2025. “Because the tariff situation has been so unpredictable…it has made long term planning impossible.”
As these tariff costs naturally trickle down to consumers, a good rewards program like the one at Michaels, can make all the difference in consumers willingness to spend.
Related: Bath & Body Works makes big change customers will notice right away
