August 07, 2014

Michaels, E-Commerce, and Sales Growth

Yup - Michaels finally dove into e-commerce in 2014.

But have you looked at their business performance, from 2009 - 2013 (click here)?
  • Compound annual growth rate of 4% per year.
  • Sales per square foot increases every single year.
  • Comp store sales increases every year.
Michaels is growing at the rate of Macy's, and yet, Michaels completely ignored e-commerce during a timeframe when Macy's thoroughly explored the omnichannel movement.

There are two trends. We're paying attention to the first trend.

  1. Growth by aligning channels.
  2. Growth by offering merchandise customers want at a price customers want to pay.