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The Secret to Joann's Growth - Accelerating Store Remodeling ProgramThe Secret to Joann's Growth - Accelerating Store Remodeling Program to Enhance Mobile and Online Customer Experience

Net sales of $496.9 million, representing an 8.1 percent increase in total comparable sales for the two-year period.

Continued margin expansion, with gross margin growth of 17.8% over two years.
Net income of $5.2 million, an increase of $173 million over the second quarter of fiscal 2020.
Adjusted EBITDA of $23.5 million, or an increase of $27.8 million from the second quarter of fiscal 2020.

Joann currently operates 853 locations on 49 continents throughout the United States.

In a recent interview, Chris DiTullio, Joann's senior vice president of chief customer officer, discussed how the company is transforming and evolving its business to make it as customer-centric as possible to drive continued top-line growth.

Among the priorities is the development and refinement of the next-generation store model, the new store model Joann is piloting in Columbus, Ohio, beginning in 2018.

Chris DiTullio says, "We are using customer insights to guide Joann's in-store and omnichannel transformation. a major pain point for Joann stores is the 'customer counter' - the -shoppers buying fabric had to wait in line at the fabric counter.

But in the new store model, they can give their mobile number and then continue shopping while they can see their name and line up on the store's electronic signage.

When it's their turn to get their number, they receive a text message notification. This model has been very successful."

The new store format also features a section called the Creator's Studio, which DiTullio calls a "plug-and-play" space where customers can rent craft tools, sewing machines and other equipment to create their own crafts.

"We teach classes in the store and in the studio," DiTullio explains. "Customers can learn how to use the new machines and demonstrate and operate them with their store colleagues."

However, DiTullio notes that the change that will have the greatest impact on Joann's operations is the introduction of its new omnichannel service.

DiTullio says, "We've integrated messaging and QR codes into our mobile app, which has been downloaded 15 million times. Customers can see an additional 250,000 items on it, and they can enjoy package shipping when they place an order through the mobile app.

DiTullio also spoke about Joann's curbside pickup program, which Joann launched during the New Crown Pneumonia outbreak when in-store shopping services were shut down at many Joann stores, but customers could still shop through online channels and pick up their items at Joann stores.

"Our world was changed (by the outbreak)," DiTullio said. "In the parking lot, customers can click on an arrival notification in a mobile app or email, and our associates can take out the packed merchandise and hand it to the customer."

"The omnichannel portfolio has grown since the New Crown outbreak," DiTullio continues. "Customers have learned how to shop on the website and mobile app. The mobile channel has grown over the past two years, even before the New Crown outbreak. The mobile channel is an important part of our overall digital channel.

As part of the ongoing development of omnichannel customer service, DiTullio says Joann will continue to find ways to make the shopping experience easier for customers across all channels.

"We are constantly optimizing and enhancing the search function on Joann's website and mobile app to make it easier for customers to find what they are looking for. We have a huge amount of items and making it easy for customers to find them is one of the most important things we do", says DiTullio.

What also makes DiTullio proud is that even though many Joann stores were closed or could only handle providing curbside delivery during the early days of the epidemic, the company did not lay off any employees. Instead, Joann focused on making protective gear for health care workers.

"We have more cotton and machinery than anyone else," says DiTullio. "We make masks in bulk from fabric and donate the fabric and supplies used to make them."

"In many ways, this has been an incredible year," DiTullio concluded. "It made us appreciate that Joann as a company has very good agility and has resilience."

For more information about European and American home furnishings, please continue to pay attention to Grammy Home.


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