Company profile

Future of Michaels Cos.

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| Quantumrun Global 1000

Michaels Stores, Inc. is a US arts and crafts retail chain. The company manufactures ten exclusive private brands including Bead Landing, Ashland, Art Minds, Craft Smart and Loops & Threads, Studio Decor, Creatology, Celebrate It, Artist's Loft, Recollections. The company is headquartered in Irving, Texas.

Home Country:
Sector:
Industry:
Specialty Retailers
Website:
Founded:
1973
Global employee count:
31000
Domestic employee count:
Number of domestic locations:
1223

Financial Health

3y average revenue:
$4825463000 USD
3y average expenses:
$761621000 USD
Funds in reserve:
$409391000 USD
Market country
Revenue from country
0.91

Asset Performance

  1. Product/Service/Dept. name
    General crafts
    Product/Service revenue
    2487288000
  2. Product/Service/Dept. name
    Home decor and seasonal
    Product/Service revenue
    1003436000
  3. Product/Service/Dept. name
    Framing
    Product/Service revenue
    927588000

Innovation assets and Pipeline

All company data collected from its 2015 annual report and other public sources. The accuracy of this data and the conclusions derived from them depend on this publicly accessible data. If a data point listed above is discovered to be inaccurate, Quantumrun will make the necessary corrections to this live page. 

DISRUPTION VULNERABILITY

Belonging to the retail sector means this company will be affected directly and indirectly by a number of disruptive opportunities and challenges over the coming decades. While described in detail within Quantumrun’s special reports, these disruptive trends can be summarized along the following broad points:

*First off, omnichannel is inevitable. Brick and mortar will merge completely by the mid-2020s to a point where a retailer’s physical and digital properties will complement each other’s sales.

*Pure e-commerce is dying. Starting with the clicks-to-bricks trend that emerged in the early 2010s, pure e-commerce retailers will find that they need to invest in physical locations to grow their revenue and market share within their respective niches.

*Physical retail is the future of branding. Future shoppers are looking to shop at physical retail stores that offer memorable, shareable, and easy to use (tech-enabled) shopping experiences.

*The marginal cost of producing physical goods will reach near zero by the late-2030s due to significant oncoming advancements in energy production, logistics, and automation. As a result, retailers will no longer be able to effectively outcompete each other on price alone. They will have to re-focus on brand—to sell ideas, more so than just products. This is because in this brave new world where anyone can practically buy anything, it’s no longer ownership that will separate the rich from the poor, it’s access. Access to exclusive brands and experiences. Access will become the new wealth of the future by the late 2030s.

*By the late 2030s, once physical goods become plentiful and cheap enough, they will be viewed more as a service than a luxury. And like music and film/television, all retail will become subscription based businesses.

*RFID tags, a technology used to track physical goods remotely (and a technology that retailers have used since the 80s), will finally lose their cost and technology limitations. As a result, retailers will begin placing RFID tags on every individual item they have in stock, regardless of price. This is crucial because RFID tech, when coupled with the Internet of Things (IoT), is an enabling technology, enabling the enhanced inventory awareness that will result in a range of new retail technologies.

COMPANY’S FUTURE PROSPECTS

Company Headlines