Michaels Sees Success In Early Holiday Sets
It’s not uncommon to hear shoppers expressing their dismay at the sight of holiday decorations and related items hitting store shelves months prior to a given celebration.
However, a decision by Michaels to set its Halloween assortment on July 7th, two weeks earlier than normal for the craft especially retailer, found a receptive audience. The retailer told Store Brands that its various seasonal decor collections, a majority of which are sold under its private brands, went flying off the shelves. In fact, three-quarters of the products were snapped up by consumers the first week of October.
“Customer demand and historical data are the biggest factors that influence our planning,” said Melissa Mills, senior vice president and general merchandising manager at Michaels. “We take into account the trends and behaviors that we’ve seen so that we are offering the products our customers want when they want them.”
She noted that some shoppers are ready for Halloween as soon as July 4th passes, while others have been asking about Halloween décor on social media since May.
Recently, Mills spoke with Store Brands about Michaels success with its earlier Halloween set in stores and how the lessons learned from this endeavor will impact the retailer’s seasonal product decisions going forward.
STORE BRANDS: The decision by Michaels to set its Halloween assortment two weeks earlier than prior years would seem to be counter-intuitive as shoppers often complain about “the next season” hitting stores too early. What made this work for Michaels?
MELISSA MILLS: There are two key factors that make Halloween so unique. One, Halloween is for everyone. It’s inclusive of all people no matter who you are or where you come from. Two, it is largely a creative holiday and creatives make up our customer base, from makers to decorators and everyone in between. Those that get excited about Halloween have been ready and waiting as they plan their handmade costumes, spooky décor, and anticipate drops of our ever-popular limited edition seasonal collections.
Additionally, setting our product earlier means we can be one of the first retailers to offer a Halloween selection each year. When the Halloween enthusiasts are looking for supplies and décor in July, they can trust that Michaels will be ready with an assortment of trend-forward merchandise.
STORE BRANDS: What were the differences in how the assortment was set this year as compared to previous years?
MILLS: Over the past few years, we’ve made great strides to transform our brick-and-mortar stores for an improved shopping experience. We’ve optimized our assortment to focus on what our customers are actually looking for. That means seasonal and holiday assortments are more prominently displayed, easier to find, and products are available when customers want them. We roll out our seasonal collection over a number of weeks knowing that some people start celebrating in July while others rush to Michaels on October 30th to find last-minute party supplies.
STORE BRANDS: Were there differences in how products were merchandised in stores?
MILLS: We focus on telling stories through our merchandising of seasonal assortments, so that our customers can be inspired and imagine themselves decorating or creating with our products. With a more focused assortment this year, we curated drive aisles for the specific ways our customers get creative around Halloween, including party planning essentials and a lot of newness in kids and novelty items that are popular last-minute grabs.
STORE BRANDS: What changes were made in how Michaels promoted its Halloween assortment to shoppers?
MILLS: The biggest changes came as a result of our brand relaunch in August, which featured all-new creative that shows up across our store environments and throughout our marketing. The new creative features bolder colors and fonts, macro photography to show the textures and tactile nature of many of our products, and emphasizes the possibilities and inspiration that our customers come to us to support.
STORE BRANDS: How did this decision impact the timing of when Michaels’ buyers began to choose products for the Halloween assortment?
MILLS: Our Trend & Design teams work over a year in advance to plan our assortments. This allows us to get ahead of the curve as we forecast trends and plan an assortment that will resonate with all customers, whether they’re looking for a more traditional feel like our Witches Lair collection or something bright and bold like our Electric Halloween collection. We’re already working on our 2025 assortment.
If we see that our customers are purchasing their Halloween and holiday products earlier, then we make sure that Michaels has it for them earlier. Our buyers are ready to go when needed to meet the earlier demand we are seeing.
STORE BRANDS: In terms of the product mix, are products largely sold under private brands or is there a mix of private and national brand products?
MILLS: We offer a mix of products from national brands, but more than 70% of our products are private label brands like Creatology, our popular kids’ brand for supplies and activity kits, and Ashland, our brand for our seasonal décor that draws-in collectors and those who love to express their creativity through decorating and transforming their space for each season or holiday.
STORE BRANDS: What were some of the key lessons learned this year?
MILLS: We know that there will always be customers out there that look forward to Halloween year-round. Michaels is here to fuel the joy of creativity and we’re listening to our customers who are excited and ready to celebrate. In setting our seasonal and holiday décor earlier, we’ve seen a positive response from customers. Our collectibles and limited-edition items are selling through and that’s a testament to our merchandising teams who put in the work, analyzed the data, and put together a unique, trend-forward assortment that appeals to all sorts of Michaels customers with something for everyone.
STORE BRANDS: What impact did this have on the transition from Michaels’ Halloween assortment to Christmas?
MILLS: Just as we shifted Halloween up to meet customer demand, we’ve also shifted our holiday setting earlier. The Tree Forest—our artificial Christmas tree assortment—has been set in stores since early October for customers to shop and explore. The first of our four, private brand holiday décor collections, dropped on October 13th and the others just dropped on October 20th.
STORE BRANDS: Will this strategy be used going forward for other key selling seasons?
MILLS: We are always listening to our customers and our store teams work hard to meet demand, whether that’s restocking popular items, driving emerging trends, or gearing up for the next holiday or season. At Michaels, we aim to offer “everything to create anything” and that means having items in stock when our customers want them, even if it’s earlier than previous years.