Joy For Crafters in Manhattan: Michael's Has Opened First Store

The store at 97th Street and Columbus Avenue in New York is the closely held chain's "first urban footprint," Chief Executive Officer John Menzer said in a telephone interview Oct. 16. "This will be a learning lab for us. We'll try different things in Manhattan and use what we learn at the next couple of urban stores we open up.”

Michaels typically operates in suburban settings, said Menzer, 58. The Irving, Texas-based company, which sells fine arts, scrapbook and jewelry-making supplies, already has stores in Long Island and Queens, New York. Lower rents in Manhattan made the new shop more affordable than before, Menzer said. Plus, craft stores tend to outperform other specialty retailers in slow economic times, he said.

"It's a low-price category and a form of home entertainment, and when people are nesting at home, crafting lends itself to that," said William Armstrong, a New York-based analyst at CL King & Associates who covers Jo-Ann Stores Inc., another U.S. crafts retailer. Hudson, Ohio-based Jo-Ann's shares have almost doubled this year. Yesterday's "soft" opening is to be followed by a grand opening on Oct. 25, which will kick off a week of events including a book signing by Martha Stewart.