Joann Fabrics is closing multiple stores in 2025. Discover the reasons behind this trend, its impact on crafting communities, and what’s next for the retail giant.
Joann Fabrics Stores Closing in 2025: A Shift in the Retail Craft Industry
In 2025, Joann Fabrics, one of America’s most beloved craft and fabric retailers, has become a trending topic as news of its store closures spreads nationwide. With over 800 stores across the U.S., the company’s decision to shutter select locations has left crafters, small businesses, and industry analysts asking: What’s driving this change, and how will it reshape the crafting landscape?
In this article, we dive into the factors behind Joann Fabrics’ 2025 closures, the ripple effects on local communities, and what the future holds for the retail craft industry.
Why Are Joann Fabrics Stores Closing? Key Reasons Explained
Joann Fabrics has long been a staple for DIY enthusiasts, quilters, and hobbyists. However, shifting consumer habits, economic pressures, and industry competition have forced the company to reevaluate its brick-and-mortar strategy. Here’s a breakdown of the primary reasons:
1. The Rise of Online Shopping and E-Commerce Competition
The COVID-19 pandemic accelerated the shift to online shopping, and by 2025, consumers increasingly favor digital convenience. Competitors like Amazon, Etsy, and even Joann’s own e-commerce platform have reduced foot traffic in physical stores. While Joann’s online sales grew, maintaining large retail spaces became financially unsustainable in certain regions.
2. Economic Pressures and Inflation
Despite post-pandemic recovery, inflation and supply chain disruptions have persisted into 2025. Rising operational costs—from labor to utilities—have squeezed profit margins. For stores in low-footfall areas, staying open no longer made economic sense.
3. Strategic Restructuring for Long-Term Survival
Joann Fabrics filed for Chapter 11 bankruptcy in 2024, a move that allowed the company to renegotiate leases and close underperforming stores. This restructuring aims to strengthen its financial position by focusing on high-performing locations and expanding its digital footprint.
4. Competition from Niche Craft Retailers
Smaller, specialized retailers (e.g., Michaels, Hobby Lobby) and subscription-based craft kits have fragmented the market. Joann’s broad inventory, while once a strength, now struggles to compete with curated, hyper-targeted offerings.
Impact on Local Communities: More Than Just a Store Closure
Joann Fabrics isn’t just a retailer—it’s a community hub. Its closures in 2025 have far-reaching consequences:
- Loss of Crafting Communities: Many stores hosted sewing classes, knitting circles, and DIY workshops. These spaces fostered creativity and connection, especially in rural areas with limited resources.
- Small Business Challenges: Local artisans and quilt shops relied on Joann’s for affordable supplies. With closures, they face longer travel times or higher costs from alternative vendors.
- Job Losses: Hundreds of employees are affected, though Joann has stated it will prioritize transfers to nearby stores where possible.
“Joann was more than a store; it was where I learned to sew with my grandma. Its closure feels like losing a piece of our town’s heart,” shared a customer from a closing Midwest location.
What’s Next for Joann Fabrics? The Road Ahead in 2025
While the closures mark the end of an era, Joann Fabrics is pivoting to adapt to modern retail demands:
1. Expanding E-Commerce and Curbside Services
Joann’s website and app have seen a 45% increase in users since 2023. The company plans to enhance its online experience with virtual workshops, AI-driven project recommendations, and faster delivery options.
2. Focusing on High-Demand Urban Markets
Stores in metropolitan areas with strong crafting cultures (e.g., Austin, Portland, Denver) will remain open and may even expand their in-store event calendars.
3. Private Label Growth
Joann is doubling down on its exclusive brands like So Craftful and Crafts 4 All to differentiate itself from competitors and boost margins.
4. Sustainability Initiatives
To appeal to eco-conscious crafters, Joann’s 2025 strategy includes recycling programs for fabric scraps and partnerships with sustainable material suppliers.
Lessons from Joann Fabrics’ Closures: The Future of Craft Retail
The Joann Fabrics story reflects broader trends in retail:
- Hybrid Retail is Here to Stay: Successful brands must blend physical and digital experiences. Think “click-and-mortar” stores with seamless online integration.
- Community Matters: Retailers that foster in-person connections (workshops, clubs) will retain loyal customers despite industry headwinds.
- Agility is Key: Companies must continually adapt to economic shifts and consumer preferences to survive.
How Crafters Can Adapt in 2025
For loyal Joann shoppers, here’s how to navigate the changes:
- Support Remaining Locations: Visit open stores to ensure their longevity.
- Join Online Communities: Facebook groups, Subreddits, and Joann’s virtual classes keep the crafting spirit alive.
- Explore Alternatives: Check out local fabric shops, Michaels, or online marketplaces like Mood Fabrics.
Final Thoughts
The closure of Joann Fabrics stores in 2025 signals a transformative period for the craft industry. While the move is bittersweet for many, it underscores the importance of innovation in a rapidly evolving retail world. As Joann pivots to meet new challenges, its legacy as a crafting haven remains intact—albeit in a reimagined form.
For now, crafters can honor the brand’s impact by embracing change, supporting local businesses, and keeping the DIY spirit thriving—one stitch at a time.