The United States faces a significant transformation in the retail landscape. The Joann store chain, specializing in craft and fabric products, has announced the closure of 255 establishments, as well as the total shutdown of the remaining ones by the end of May.
The news has shaken the sector, representing the disappearance of hundreds of stores in a matter of weeks. This collapse, however, has opened opportunities for other companies interested in occupying the premises that Joann will leave vacant. Burlington, a growing retailer, has been one of the first to seize this opportunity.
According to Retail Dive, the company will take control of 45 lease agreements in May and June, all located in key states like California and Texas. The estimated amount Burlington will spend on these locations exceeds $50,000.
A Decision That Opens New Opportunities
Besides Burlington, other chains like Hobby Lobby and Boot Barn are also considering acquiring some of the vacated premises, although it hasn't been confirmed how many they will take. Analysts from the investment bank Evercore have warned that retailers with expansion plans should move quickly and aggressively.
For now, there is no expected increase in the development of new shopping centers in the country. Burlington has already shown an ambitious strategy. In 2024, the company opened 101 new net stores and relocated 31 old establishments.
The financial results have been positive: net sales for the fourth quarter increased by 4.8% year-on-year, reaching nearly $3.3 billion. Meanwhile, net earnings rose by 14.6%, reaching $260.8 million. However, its CEO, Michael O'Sullivan, has warned about the economic uncertainty heading into 2025.
A Company with Serious Difficulties
As for Joann, its definitive closure doesn't surprise experts, considering it has declared bankruptcy twice in the last year. Despite attempting to reorganize as a private company after its first declaration, it faced serious difficulties again in January 2025. Persistent supply chain issues were decisive in the final decision.
A company spokesperson explained that the measure was taken after an analysis of the stores' performance and their alignment with Joann's future strategy. Meanwhile, consumers can still take advantage of liquidations of up to 70% in open stores, although the company has suspended online payments, warning about fraudulent sites posing as the brand.