They're back!

So.... I read the other day that Walmart is going to resume selling fabric and other “heritage” merchandise like craft supplies and fishing tackle again. They're trying to reverse a streak of seven consecutive quarters of declining sales in U.S. stores. Many of you might remember that there was quite a ruckus created when these departments disappeared from most of their stores in 2010.

Some consumers were VERY upset, because Walmart was the only store that sold fabric anywhere  near them....

Walmart- good guy or bad guy?
You decide!

And some independent fabric retailers were VERY happy, figuring they would automatically benefit from this vacuum created by Walmart's exit.  

So I guess the BIG question is... who were the big winners and losers? Some of the answers just might surprise you!

The Losers

• Walmart- The very fact that Walmart is reversing their position so quickly, coupled with their declining sales record automatically puts them in the losers bracket.
• Customers in Rural Areas- Some of the loudest protests concerning Walmart's controversial decision, was from the rural areas of our country, where customers often lived 20-30-50-even 100 miles from the nearest fabric store after Walmart stopped selling fabric.
• Beginning Sewists- Let's face it, folks that are just learning to sew or quilt probably don't want to spend $8 or more per yard just to try the hobby on for size. 
• SOME Fabric Manufacturers- What? How can this be? The impact Walmart’s decision has had on fabric makers is actually pretty interesting. Think about it this way. Walmart would order thousands of yards from different companies. Their orders would provide revenue. The revenue would provide the manufacturers more money to in turn re-invest in the development of  new designs and products, which it turn would debut at the quilt markets and then sold in independent fabric stores. So.... without the presence of Walmart, many smaller fabric manufacturers had a REALLY big cash flow problem... and eventually, went out of business.

The Winners

• JoAnn's- One of the indisputable benefactors of Walmart's controversial decision to stop selling fabric, was JoAnn's, whose sales have literally soared.Whether their store policies make them deserving of this landfall is immaterial. And JoAnn's has made the most of the influx of cash by introducing a few better grade lines of fabric by the likes of quilting legend, Denyse Schmidt, and April Johnston, runner-up in the last Project Runway season.
• Some Independent Fabric/Quilting Stores- some forward-thinking owners recognized the resulting "fabric vacuum" as an opportunity to diversify and reach out to this disgruntled customer base with classes for beginners and pre-cut kits. Some especially brave entrepreneurs opened new stores or expanded their current space, even in a very tough economic environment.
• Other Chains-such as Michael's and Hobby Lobby began testing the waters, experimenting with pre-cut fabrics in an attempt to provide the former Walmart customers with the products they desired.

So... since Walmart is reversing their stance, now what?

The fact is there will always be a demand for the discounted, lower-quality fabric lines, and these types of fabrics will always dominate the inventory at the chain stores. Like it or not, there IS a demand for these types of fabrics and probably always will be. This is a niche customer, and if Walmart doesn't supply this customer, someone else will. And it goes without saying that this is probably where your newbie sewers are going to go when they're thinking about trying their hand at sewing or quilting as possible.  

But by my way of thinking, it really doesn't matter HOW folks are introduced to the world of sewing, only that we bring as many folks to the table as possible! From there, it's up to us, (the independents), to be as fabulous & attractive as possible, so these newcomers might be enticed to sample what we have to offer! In other words, we need to provide something that the chain suppliers can only dream of, or don't care about offering ...  and that's excellent service, expertise that we're willing to share, creative innovation and quality that puts their products to shame!


But now I'd like to hear YOUR thoughts!
I'd love for you to share your comments in the space below.

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