Crafting and the Economy

We all know the Craft Industry is suffering in this economy. From the closing of many craft magazines, including Simple Scrapbooks, M.E.'s Home Companion, Country Living and others to the dismal numbers at the last CHA show to the current financial settlements crisis at Creating Keepsakes magazine...there's no doubt about it. We're suffering. Recently I heard this little blip on NPR ...

Craft Stores Feeling Handmade Love
by Charla Bear

Weekend Edition Saturday, February 2009 · About a dozen little kids cram around a table in a Michaels craft store in Springfield, Va., to grab a folded piece of plain cardstock. They can't wait to pile it up with foam hearts, silky ribbons and colorful letters. Their parents are just as excited. "If we can do an arts and crafts not in my house, that's nice," laughs Vanessa Parks. She and her two daughters are at this family workshop to make their valentines. She says the price was right — free.

About 25,000 people nationwide went to the card-making event at Michaels stores, says Stuart Aitken, the company's chief marketing officer. The free event was Aitken's brainchild, and he says a bad economy can be good for craft sales.

"During down economies, customers tend to go back to basics," Aitken says. "Arts and crafts are the most basic form."

The Jo-Ann craft chain and independent shops say they're also seeing a trend. So do Craft Magazine, the American Sewing Guild and just about every other craft organization.
"People are truly looking for value like they've never looked before," Aitken says. "It's a great time for retailers to understand that and look specifically at what customers want from them to deliver value."

So, if there is an upturn with crafting during this economic depression....what's with this news from today?

The bond market is doing the equivalent of a death watch on several well-known companies, signaling the U.S. economy could be in for more pain as struggling firms renege on loan payments and possibly file for bankruptcy. Bonds of General Motors Corp.; retailer Michaels Stores and theme-park operator Six Flags Inc. all are trading for under 25 cents on the dollar. That means bond holders anticipate these companies may not be able to keep up payments.

Michaels has always kind of been sucky with their customer service and, when asked a question, their employees seem to always be wandering around the store as if they have never been there before. But if JoAnns goes out of business I may lose my will to live.

Hang on JoAnns! Hang ON!!! Don't go toward the light!
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