How Many Joann Stores Are Closing in 2025
Joann has announced a significant reduction in its store footprint as part of a restructuring plan. The company is closing underperforming locations and consolidating operations to focus on stronger markets. This wave of closures follows a period of declining foot traffic and rising competition from online craft retailers. The exact number of stores closing each quarter is tied to lease expirations and corporate strategy shifts. Investors track these moves closely because they signal deeper changes in the retail landscape. For the latest store count updates, see the company's public filings and investor communications on SEC EDGAR.
The pace of closures has accelerated since the company emerged from bankruptcy protection earlier in the decade. Analysts compare Joann's restructuring to similar moves by other mid-market retailers that struggled with high fixed costs. The company now operates fewer locations than it did at its peak, and the trend is expected to continue. Store closings are concentrated in malls and shopping centers where lease costs remain high. Meanwhile, Joann is shifting focus toward e-commerce and smaller-format stores in some regions. This strategy mirrors what other retailers have done to reduce overhead while maintaining brand presence.
Why Joann Is Closing Stores
The primary drivers behind the closures include weak sales growth, high rent expenses, and changing consumer habits. Shoppers increasingly buy yarn, fabrics, and craft supplies online, which pressures brick-and-mortar chains. Joann has also faced margin compression from rising input costs and competitive pricing from larger retailers and digital platforms. These factors forced the company to evaluate every location's profitability and exit markets where returns are below target. The restructuring is designed to align the store network with current demand patterns and long-term profitability goals. More context on retail bankruptcies and closures is available in analyses from Forbes.
Internal documents and earnings calls show that management is prioritizing digital sales channels alongside a leaner physical footprint. The company is investing in its website, app, and fulfillment capabilities to capture online demand. At the same time, Joann is testing smaller stores in urban areas where full-size locations are no longer viable. These hybrid strategies aim to reduce exposure to volatile mall traffic while maintaining brand visibility. The closure decisions are also influenced by the expiration of leases that are no longer economically attractive. This approach reflects a broader industry trend where retailers balance physical presence with digital growth.
What the Joann Store Closures Mean for Customers and Employees
For customers, the closures mean fewer nearby locations to visit, but the company is expanding shipping and curbside pickup options. Joann is directing affected shoppers to its website and remaining stores for product availability and services. Loyalty program members can still access discounts and promotions through digital channels. The company has also increased its focus on online classes and tutorials to retain craft enthusiasts. Employees at closing locations are offered transfer opportunities to nearby stores or corporate roles where possible. Workforce reductions are part of the restructuring, but the company aims to minimize disruption to staff.
The impact on local communities varies, especially in areas where Joann was a primary craft and fabric retailer. Some cities have seen a gap in physical retail options for hobbyists and DIY enthusiasts. The company's shift toward online sales and smaller stores is intended to address these gaps over time. However, the transition period can be challenging for both customers and workers who relied on in-store experiences. Industry observers note that Joann's restructuring is part of a wider consolidation in the retail sector. Comparable moves by