Navigating Discretionary Retail: A Turnaround Strategy for JOANN

Brya Patterson, et al., Spring 2025, University of Washington, MS Information Management (MSIM)

Brya K. Patterson

Executive Summary

  1. The Mission: This case study represents an assessment and comprehensive turnaround strategy for a $2B legacy retailer (JOANN) facing Chapter 11 bankruptcy due to macroeconomic shifts and supply chain obsolescence.
  2. Impact: I collaborated with a multi-disciplinary team at the University of Washington - Masters of Information Management, to synthesize market data into actionable recommendations for rebranding, process redesign, and technological investment.
  3. Core Capabilities: Strategic Planning, Market Analysis, Digital Transformation, Crisis Management.


Remediation and Recommendations

  • Inventory & Debt Control: Implementation of Oracle Fusion Cloud to replace siloed legacy systems, to enable real-time inventory monitoring and demand planning to eliminate the overstocking that led to financial instability.
  • Data-Driven Fiscal Oversight: Deployment of a scenario-based planning and automated financial reporting system to provide leadership with the visibility needed to manage debt and operational risk.
  • Omnichannel CRM: Proposed an AI-driven customer segmentation strategy to modernize the brand and engage younger demographics through personalized marketing.
  • Hybrid Retail Innovation: Developed a blueprint for "Phygital" retail, including Augmented Reality (AR) in-store navigation and virtual workshops to increase foot traffic and customer lifetime value.

Strategic Pivot

Identified critical improvements needed for the business to perform in a discretionary spending post-pandemic market.

Systemic Innovation

Advocated for modernizing outdated supply chain and inventory management systems to increase organizational agility during market shifts.

Creative Analysis

Synthesized complex macroeconomic data into a cohesive "People, Process, and Technology" framework and investment strategy to inspire stakeholder confidence.

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Overview

JOANN is an American retail chain, founded in 1943 in Cleveland, Ohio, specializing in fabric and needlework crafts. Post-pandemic, the organization faced major drops in sales despite this system's implementation, and inflation caused customers to shift spending, forcing some retailers to lower prices.JOANN is an example of a retailer in a discretionary spending market that failed to keep up with competitors and was deeply impacted by macroeconomic changes. At the height of the pandemic in 2020, JOANN saw a demand of over 500% compared to its 2019 demand using its buy online, pick up in-store (BOPIS) ecommerce feature (Miller, 2020). As of 2025, JOANN has filed once again for Chapter 11 bankruptcy with closing the remaining 800 stores nationwide (Limehouse, 2025).

The purpose of this case study is to assess JOANN's current stats and give JOANN potential options and recommendations in order to prevent the organization from going under as well as some decisions that should have been made much earlier. In the retail industry, outdated supply chain and inventory management systems can severely limit a company’s ability to adapt during market shifts, this was the problem for JOANN.

Key Strategic Results & Remediation

  • Inventory Inefficiency: To resolve poor visibility and post-pandemic overstocking, the study recommends Demand Planning in SCM and automated real-time inventory monitoring.
  • Financial Control: To address massive debt and poor risk assessment, the researchers suggest Scenario-based planning and real-time reporting within an ERP module.
  • Customer Engagement: To combat an aging customer base and ineffective marketing, the study proposes AI-driven customer segmentation and Omnichannel CRM to reach younger audiences.

Future State Recommendations

  • AI for Forecasting: Utilizing algorithms to analyze historical sales and weather patterns to automatically optimize stock levels.
  • Augmented Reality (AR) Navigation: A mobile app to help customers find products in large physical stores or preview DIY projects before purchase.
  • Hybrid Retail Experiences: Blending physical spaces with digital content, such as live-streamed virtual workshops accessible via in-store QR codes.
  • Process Automation: Transitioning from manual decision-making to automated system logic to minimize stockouts and reduce labor burdens.

Implementation Feasibility

Our team acknowledges that while upfront costs for a broad retail footprint are high, the long-term savings from improved forecasting and reduced errors would likely outweigh these expenses. A phased rollout is recommended, starting with Supply Chain Management (SCM) to achieve "quick wins" by fixing inventory issues and restoring customer trust.

This project has shown how a structured approach to analyzing systems, combined with creative thinking, can generate powerful improvements for a business. JOANN is well-positioned to use these insights to rebrand itself as a leading force in the craft and DIY market. With the right investments in people, process redesign, and modern technology, JOANN can not only overcome its current challenges but also become a brand that inspires and connects with customers in meaningful ways. This report is intended to serve as a roadmap to help JOANN embrace innovation, meet future demands, and thrive in an increasingly digital world.