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Update | Etsy, Creativeworld, Stampin’ Up!, Michaels, & More!

[Disclosure: Messe Frankfurt is a sponsor of this website.]

Increases. Etsy announced yesterday (Thursday) that it is increasing seller fees significantly on July 16th. Transaction fees for sales will be increasing to 5% from the current 3.5% fee. The transaction fees will also now be charged on shipping as well as the listing’s sale price.

In addition to the increased fees, Etsy will be launching subscription services for sellers. The first product launching will be Etsy Plus, for an “introductory price” of $10 per month. (No word on what the price will be after the introductory price runs out.) Etsy Plus will include 15 free monthly listing credits, a $5 monthly credit for promoted listings, some new special features for shop owners, and discounts on items like custom web addresses and packaging. Etsy Premium will launch in 2019, and is targeted for Etsy shop owners who have employees.

Etsy’s Chief Financial Officer Rachel Glaser described the increased fees in the announcement as a method for Etsy to invest in more marketing of its sellers.  “Our revised fee structure will allow us to make more meaningful investments on behalf of our sellers while remaining what we believe is the best value for entrepreneurs looking to start, manage, and grow a creative business. We plan to increase our 2017 direct marketing spend by at least 40% in 2018, revamp our Etsy community platforms, and execute against an exciting product roadmap. We believe all of this will help drive near-term growth and increase buyer lifetime value.”

In the same announcement that unveiled the increased fees, Etsy also announced new market guidance for earnings for the 2018 fiscal year. GMS growth is now predicted at 16%-19%, up from 16%-18%. The company is now predicting revenue growth of 32%-34%, up from 22%-24%. The previous guidance was issued at their earnings call last month. There was no change to the forecasted adjusted EBITDA margin of 21%-23%.

The changes went over well with investors. Etsy shares rose 35% in the first few hours of trading yesterday to a record high of $44.78. The stock closed for the day up over 25% at $41.65.

Endings. Studio Calico has announced that the June kits are the last ones for the company’s Scrapbook and Planner kits. The Scrapbook kit is the original kit that launched Studio Calico 11 years ago. Subscribers to the discontinued kits can transfer their subscriptions to the company’s Documenter (pocket scrapboook), or Stamp kit, or to the new Traveler’s Notebook kit launching in July.

Studio Calico’s announcement on their blog explained the reason for the changes: “There has been a drastic change in the memory keeping industry over the last 11 years, and we are continually thankful for all our loyal customers, their feedback, and the ever-evolving community of paper lovers.”

Creativeworld 2018

Shows. Messe Frankfurt announced last week that 300 manufacturers are signed up to take part in the Creativeworld 2019 trade fair. The event will take place at the Messe Frankfurt exhibition grounds in Frankfurt am Main, Germany from the 26th to the 29th of January, 2019. Companies committed to returning to Creativeworld for 2019 include C. Kreul, Clairefontaine, Creativ Company, Efco Kreativ, Folia, Marabu, Rayher Hobby, Rico Design and Staedtler.

“We are very pleased with the number of registrations received and are keenly looking forward to Creativeworld 2019. Our planning for the hall layout and the multi-faceted programme of events are also well advanced”, says Michael Reichhold, Creativeworld Director, Messe Frankfurt Exhibition GmbH. Continue Reading →

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Michaels CEO Rings NASDAQ Opening Bell for Michaels IPO

Michaels Stores CEO Chuck Rubin rang the opening bell on the NASDAQ exchange this morning to celebrate the start of trading of Michaels IPO on the exchange today.

Since the high-tech NASDAQ exchange does not have a physical trading floor, the exchange uses a location in New York’s Times Square for its bell ceremonies instead. Below, Michaels CEO Chuck Rubin (left) poses with NASDAQ CEO Robert Greifeld (right).

Continue Reading →

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Positions Available: Michaels Assistant Store Manager

Michaels Assistant Store Manager: Bradenton, FL & Gulfport, MS

Michaels Stores, Inc. is advertising to fill full-time Assistant Store Manager positions in two of their locations.  Job requirements include 2-5 years of work experience and a high school or equivalent degree.  For more information or to apply for these positions please follow the links below.

*Please note that Scrapbook Update is in no way associated with the companies and the positions listed here.  Please forward all questions or comments about the job listings to the offering organization via the links provided with this article.  Thanks!

Fiskars Merging Distribution Centers in Mississippi

Fiskars announced Thursday that it is consolidating all of its warehouse and distribution operations for its Garden and School/Office/Craft divisions into a single new center in Southaven, Mississippi later this year.

Two warehouse/distribution facilities in Wisconsin will be closed to allow for the consolidation in Mississippi. The company’s Sauk City, WI facility will be closed by the end of 2010, and the Wausau, WI facility will close by May 2011. A total of 115 employees in the two locations were notified Thursday that they will be laid off due the facilities closing. Fiskars is offering severance packages and transition programs to the affected workers.

The merger of the distribution facilities is part of an ongoing effort by Fiskars to merge their Garden and School/Office/Craft divisions to maximize the efficiency of the company and improve its order fulfillment for its retail customers. The effort began last year when the business operations of the two divisions were moved into a single facility in Madison, WI.

The company will begin occupying a 260,000 square foot facility in Southaven, Mississippi in September 2010. The facility will host some light assembly and the distribution functions, employing 100 people in two shifts.

The Mississippi location was selected for the consolidated distribution center because of its proximity to serving Fiskars’ major retail accounts, which include Michaels (Dallas), Wal-mart (Arkansas), Home Depot (Atlanta), Lowe’s (North Carolina), and Office Depot (Florida).

“The new location is in closer proximity to many of our retail partners’ distribution centers allowing us to provide improved customer service,” Fiskars spokeswoman Julia Prohaska told Scrapbook Update. “The merging of our garden and craft distribution also allows us to combine orders in single shipments.”

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Michaels Founder Passes Away

Michael Dupey, widely credited with being the creator of the craft superstore by being the founder of the Michaels and MJDesigns store chains, passed away April 30th.

Dupey created the beginning of the Michael’s chain in 1973 by converting one of his father’s Ben Franklin variety stores in Dallas into a crafts store that he named Michaels Arts & Crafts. By 1983 the chain, still owned by Dupey’s father, had expanded to 11 stores, with most of the stores located in Texas. Dupey Enterprises sold the Michaels chain that year to legendary Texas entrepreneurs the Wyly brothers. As part of the deal, Dupey retained two stores and the sole right to the Michaels name in the Dallas area.

In 1984, the Wyly brothers spun Michaels off into a public corporation in which they were the majority shareholders. After a protracted legal battle, Dupey lost the exclusive rights to the Dallas area market and the Michaels name. He renamed his stores MJ Designs, but the arrival of the Michaels chain in the Dallas area eventually forced MJ Designs into bankruptcy in 1999.

Dupey lost MJ Designs in the bankruptcy. The company’s stores in the Northeast were closed and the remaining ones in the Dallas area sold. In 2002, a 2nd trip through bankruptcy court shuttered the company permanently. However, according to the Dallas News, at its peak in 1997 during Dupey’s leadership, MJ Designs had 57 stores and sales of $250 million.

In 1990, Dupey rejoined Michaels for a brief period as a consultant.

John B. Menzer, CEO of Michaels Stores, Inc., issued the following statement to Scrapbook Update about the passing of the company’s founder:

We are saddened by the death of Mike Dupey, a great retailer and innovator who was at the forefront of the arts & crafts superstore concept.  He was a passionate advocate for our industry, and his key role in our company’s history is not forgotten.  Our deepest sympathies go out to Mike’s family.

Despite having had no financial or management interest in the chain he founded for decades, Dupey was apparently still interested in what the chain was doing. In mid-April, a member of the TwoPeasInABucket.com message board reported seeing him in the Michaels store near corporate headquarters, checking out the new store layout that is currently being implemented across the chain:

…I headed over to M’s while my prescription was being refilled nearby. I was looking for some paper when I overheard 2 people talking about the new re-do and how long it had taken them to get to this point. One of them commented that scrapbookers don’t show by mfg, but by theme.

I took myself right over there and told them that seasoned scrappers are looking for certain lines, not just a catagory like travel, baby, etc. Especially if it’s a hot line or a well known line.

An older man introduced himself to me and it was no other than Micheal [sic] Dupey….We had an interesting conversation about Micheals [sic] and the scrapbook industry as a whole. You know, the thing that struck me the most is that he was most disappointed in their lack of change.

Well, he had been in the store checking out the new store set. Ok, I might have forgotten to say this is their “corporate/BeltLine” store. And every store would be getting the same set. Their headquarters are here as well.

Among those who worked with him in the crafts industry, Dupey was widely viewed as having a special genius for spotting trends and marketing them. As Dupey’s longtime friend, CLN Online’s Mike Hartnett, told Scrapbook Update:

[Mike was] absolutely a brilliant merchandiser and had an uncanny knack for spotting a trend long before anyone else. I bet he would have had a huge scrapbooking department before the competition knew what scrapbooking was.

Dupey was open about his battle with bipolar disorder, and his mercurial personality was both familiar and legendary to those who came in contact with him in the crafts industry. Alice Beas, of Crafty Productions, had this to say to CLN Online about Dupey:

I went to MJ Designs to sell something to Howard Hoffman and Mike Dupey kidnapped me. He drove me to an MJD store to show me an amazing jungle he had imported, complete with life-size trees and swinging monkeys. It was massive!

Mike learned that I had a new baby at home and forced me to take a 5-ft.-tall wooden giraffe home with me – on an airplane. That thing still makes me laugh.

Mike Dupey is a strong figure in my memory of “the good ole days”: walking shows with his feathered hat and entourage of black-shirted staff. What a thrill to have him show up at your booth at HIA on the last day – with an order!

I am happy that I have been in this industry long enough to remember the great days of Mike Dupey. God bless the gifts he left us.

Dupey is survived by his two children, Todd Dupey and Melissa Jabin, and two grandchildren, as well as his former wife Patty. A memorial service was held Tuesday afternoon, May 4th, at St. Ann Catholic Parish in Coppell, TX.

[Editor’s Note: Extra special thanks to Mike Hartnett of CLN Online for his generous help in compiling this tribute.]

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Michaels Owner Bidding For UK Retailer HobbyCraft

The UK craft trade magazine Craft Business is reporting that private equity group Blackstone, which along with Bain Capital purchased Michaels in 2006, is now bidding to purchase UK craft retailer HobbyCraft.

The company has been for sale since late last year. Competition for the purchase is fierce, attracting reportedly as many as 20 bidders.

HobbyCraft, founded in 1995, is the UK’s only dedicated craft chain store. It currently has 47 stores and plans to expand to 180.

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