price increases and tariff concerns.   “Whether it’s dressing in costume or carving a pumpkin, more consumers plan to take part in Halloween activities and traditions,” she said.  “Retailers are prepared to ensure the shopping experience is a treat for consumers this Halloween season.”  One retailer primed to ensure the ultimate experience for shoppers this haunting season is the American arts and crafts chain Michaels. In the wake of Party City’s and Joann Fabric’s recent liquidations, the company has been stepping up to fill the gap left behind by these legacy retail chains.   How Michaels is stepping up to fill in a deserted retail space On September 24, Michaels announced the debut of two new in-store experiences, The Knit & Sew Shop and The Party Shop. The Knit & Sew is a build-up to Michael’s acquisition deal of Joann Fabric’s intellectual property and private labels, which took place in June 2024. The store-within-a-store concept, co-branded with Michaels and Joann’s logos, will carry popular Joann brands, including the Big Twist yarn collection. It will also have sewing machines available for purchase and introduce new in-store services, such as fabric cutting tables, perfect for shoppers looking to create a DIY-style custom piece.  Additionally, while the acquisition deal didn’t include Joann’s former storefronts, Michaels has plans in place to pick up the leases on three Joann locations in Arkansas, Texas and California and reopen them as Michaels stores by the end of the year.  Meanwhile, The Party Shop, a not-so-subtle cue to the defunct party supply store retailer, had made Michaels “the ultimate celebration destination”, so the brand claims.  In addition to the 79,000 balloon and party items available online, Michaels has expanded its party space in every store to accommodate 700 new products – from DIY balloon arch kits and tableware to themed paper goods and accessories.  “The launch of The Knit & Sew Shop and The Party Shop at Michaels is a transformative step forward on our mission to become the go-to destination for fueling creativity and celebration,” said David Boone, Michaels’ chief executive officer.  Is Michaels primed to be the king of the Halloween shopping season? Global Data’s managing director, Neil Saunders, told Inside Retail that Michaels has done a great job of capitalizing on the demise of its two former rivals.  “The failure of both retailers left holes in the retail landscape, and a significant amount of demand is now up for grabs,” he said.   “Many retailers are trying to take a slice of this, including generalists like Walgreens and Five Below.” However, as Saunders added, party, occasions and craft products are better suited to Michaels’ wheelhouse. If Michaels can execute with authority, it can achieve a significant share in a way that retailers dabbling in the space won’t be able to do.  Michaels also has permission to play in the Halloween and holiday retail space, as it has been involved in these areas for a long time, so consumers already recognize the chain as a destination. “That said, it does face competition from other specialists like Hobby Lobby, which, while it does not sell Halloween goods, has very strong Christmas assortments.  Not to mention, competition from other big players in the Halloween market, such as Amazon and Spirit Halloween.  With over 1,500 locations, many of which are temporary and only operate between August and early November, Spirit Halloween has the most visible brick-and-mortar presence for consumers to gather almost all their Halloween-related needs, from costumes to decorations. In 2024, financial experts estimated that Spirit Halloween generated approximately $1.1 billion in revenue. This year, Spirit is not only primed to stay ahead of the Halloween shopping season but also has plans in place to dominate the more festive holiday season ahead. Based on the successful pilot test of Spirit Halloween’s spinoff in 2024, with 10 store locations, this year, there will be 30 pop-up Spirit Christmas locations in the Northeast and Great Lakes, nearly quadrupling its footprint from last year, according to a press release from Spencer Gifts and Spirit Halloween Superstores. As the spooky season approaches, retailers will have their work cut out for themselves to keep up with the consumers’ frenzy for Halloween-related items.