Michaels (NASDAQ: MIK) is the latest retailer to sign up with Instacart for delivery of its products in select markets.
The arts and crafts retailer will offer same-day delivery of its products from nearly 100 Michaels stores across Chicago, Dallas and Washington, D.C., the company said. The pilot program is expected to be followed by a full nationwide rollout of the service.
“Michaels is here for the Makers and we are thrilled to be the first arts and crafts retailer to be on the Instacart Marketplace,” said Heather Bennett, Michaels’ executive vice president of innovation. “As the largest one-stop shop for all things arts and crafts in North America, our partnership with Instacart provides a quick and convenient way for our makers to purchase ordinary craft supplies so they can create extraordinary projects.”
Instacart has been rolling out services beyond its core grocery customers in the past year. In addition to more than 500 local, regional and national retailers using the service, including ALDI, Food Lion, Publix, Sprouts and Wegmans, the company’s Instacart Pickup service has added more than 2,000 retailer locations in 30 states. Instacart now services over 3,300 stores.
Its retail partnerships also include CVS, Costco, Petco, BJ’s, Walmart Canada, Whole Foods, 7-Eleven, Dick’s Sporting Goods and the Disney Store.
Michaels has benefited from the pandemic as more Americans stayed home and turned to crafts. The company reported adjusted earnings per share of $1.69 for 2020, up from $1.26 in 2019. Net sales rose 11.3% year-over-year to $1.9 billion.
Michaels is set to be acquired by Apollo Global Management for $3.3 billion in a deal that will take the company private. The deal is expected to be concluded in the first half of this year.
The makers market that Michaels and other craft retailers serve has been booming in recent years. According to IBIS World, the online hobby and craft supplies sales market is expected to reach $15.1 billion 2021, growing 1.8%. Since 2016, U.S. online sales have grown at an 8% annualized rate. The COVID pandemic accelerated that growth, with the market jumping from $13.6 billion in 2019 to $14.8 billion in 2020. In 2012, the market was just $5 billion.
Click for more Modern Shipper articles by Brian Straight.
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