Michaels Companies, a retailer for arts and crafts, attempted to pull off an IPO this year. But unfortunately, the plans were derailed because the company’s CEO had a heart attack. So in his place, Michaels brought in a new leader, Chuck Rubin. All in all, he has been a good choice and of course, he has continued the plans for a public offering. In fact, Michaels recently refiled an S-1.
Michaels operates 1,259 stores (which include 122 Aaron Brothers ), making it the leader in its industry. Each location has 36,000 stock-keeping units that include framing, scrapbooking materials, arts supplies, floral and home décor. The company also has an aggressive strategy with social media on Twitter (TWTR) and Facebook (FB).
A key to the success of Michaels is its private-brand products, which provides the company with higher margins. In fact, about 49% of the total offerings are in this category. But Michaels has also leveraged its massive scale and strong brand to snag exclusives from third-party vendors. Read