Michaels Revamps Loyalty Program to Capture Surging $3,200 Annual Craft Spend
Michaels has introduced a new three-tiered loyalty program offering up to 9% back in rewards to capitalize on a 67% increase in hobby spending since 2020. The strategy targets 'analog' enthusiasts as digital fatigue drives 71% of U.S. consumers toward hands-on creative hobbies.
Key Takeaways
- Michaels has introduced a new three-tiered loyalty program offering up to 9% back in rewards to capitalize on a 67% increase in hobby spending since 2020.
- The strategy targets 'analog' enthusiasts as digital fatigue drives 71% of U.S.
- consumers toward hands-on creative hobbies.
Mentioned
Key Intelligence
Key Facts
- 171% of U.S. consumers now identify as crafters as of late 2025
- 2Average annual hobby spend reached $3,200, a 67% increase since 2020
- 3Michaels operates a network of over 1,300 stores nationwide
- 4New Platinum tier offers 9% back on purchases for customers spending over $1,000 annually
- 5The loyalty program relaunch includes three distinct tiers: Red, Gold, and Platinum
| Loyalty Tier | ||
|---|---|---|
| Red Members | Entry Level | 3% Back |
| Gold Members | $300+ | 6% Back |
| Platinum Members | $1,000+ | 9% Back |
Analysis
The arts and crafts sector is undergoing a significant transformation as consumers pivot away from digital screens toward tactile, 'analog' experiences. Michaels' decision to overhaul its loyalty program in March 2026 is a calculated response to this cultural shift, which the company describes as 'creativity as self-definition.' By offering rewards as high as 9% for its top-tier 'Platinum' members, Michaels is not just incentivizing repeat visits; it is attempting to lock in a demographic that is spending more than ever on hobby supplies. This move signals a shift from broad-based discounting to a more sophisticated, data-driven retention strategy designed to reward the most frequent shoppers.
According to data from late 2025, the average crafter now spends $3,200 annually—a staggering 67% increase from 2020 levels. This surge in spending suggests that crafting has moved from a niche pastime to a core lifestyle component for 71% of U.S. consumers. Michaels, with its 1,300-store footprint, is uniquely positioned to capture this wallet share, but it faces stiff competition from both specialized rivals like Hobby Lobby and mass-market giants like Target. The relaunch of the loyalty program is a defensive and offensive maneuver, intended to protect its market lead while attracting high-value customers from competitors who may not offer such aggressive cashback incentives.
According to data from late 2025, the average crafter now spends $3,200 annually—a staggering 67% increase from 2020 levels.
The tiered structure—comprising Red, Gold, and Platinum levels—is particularly noteworthy for its aggressive reward percentages. While most retail loyalty programs in the broader e-commerce and retail space hover around 1% to 5% back, Michaels' 9% Platinum tier—triggered at a $1,000 annual spend—is a direct play for the 'super-user.' For a consumer spending the national average of $3,200, a 9% return represents nearly $288 in annual savings, a compelling reason to consolidate all hobby spending at a single retailer. This move comes at a time when competitors like Joann's have faced financial headwinds, potentially allowing Michaels to absorb market share from struggling peers who cannot afford to match such deep loyalty discounts.
What to Watch
Beyond the immediate financial incentives, the relaunch reflects a broader trend in retail: the use of loyalty programs as data engines. By encouraging shoppers to identify themselves at checkout in exchange for rewards, Michaels gains granular insights into specific crafting trends—whether it's a resurgence in knitting, scrapbooking, or DIY home decor. This data likely fueled the company's '2026 Creativity Trend Report,' allowing them to stay ahead of inventory needs in a volatile supply chain environment. Heather Bennett, Michaels' President and Chief Customer Officer, emphasized that creativity has become a 'cornerstone of the cultural return to hands-on, offline living,' suggesting that the company views its role as more than just a supplier, but as a lifestyle enabler.
Looking forward, the success of this program will depend on Michaels' ability to maintain these high reward margins while managing operational costs in an inflationary environment. As the company moves into the second half of 2026, industry analysts will be watching to see if this tiered approach successfully increases the 'share of wallet' among its Gold and Platinum members. If Michaels can successfully pair these financial rewards with a superior in-store experience and exclusive product lines, they may well solidify their 'craft-store crown' for the remainder of the decade, setting a new benchmark for loyalty programs in the specialty retail sector.
Cite This Page
"Michaels Revamps Loyalty Program to Capture Surging $3,200 Annual Craft Spend." Retail Intelligence Brief, March 17, 2026. https://getretailbrief.com/story/michaels-loyalty-program-relaunch-2026
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