Michaels Canada president Tom Making poses in this undated handout photo. A battle is brewing for arts and crafts customers in Quebec as North American giant Michaels is set to enter the province with the simultaneous opening of seven stores on Friday. The move by the Texas-based retailer will put it in closer competition with homegrown De Serres, which has 18 locations in the province and 28 across Canada. THE CANADIAN PRESS/HO - Michaels, Moses Olmos
September 11, 2012 - 1:00 PM
MONTREAL - A battle is brewing for arts and crafts customers in Quebec as North American giant Michaels is set to enter the province with the simultaneous opening of seven stores on Friday.
The move by the Texas-based retailer will put it in closer competition with homegrown De Serres, which has 18 locations in the province and 28 across Canada.
After three years of planning, Michaels will open stores in Gatineau, LaSalle, Lachenaie, St-Jean-sur-Richelieu, St-Jerome, Vaudreuil-Dorion, and Laval.
"We're pulling out all the stops to make it a success, and we're sure our unique selection tailored to the Quebec market will be a hit," said Tom Making, president of Michaels Canada.
Michaels operates more than 1,070 big box stores averaging 1,800 square metres, including 89 in Canada's other nine provinces.
About nine per cent of its more than US$4.2 billion of sales in fiscal 2011 came from Canada.
The stores carry more than 35,000 products. Nearly half its sales are in general products and children's crafts, according to its 2011 annual report. The rest is divided among home decor and seasonal, framed and scrapbooking goods.
Opened in 1983, it was purchased in 2006 by private equity firms Bain Capital, founded by U.S. presidential candidate Mitt Romney, and The Blackstone Group. Michaels plans to go public.
Michaels expected to open or relocate up to 50 stores this year and says the U.S. and Canadian markets can support 1,400 to 1,600 of its stores.
It is the largest arts and crafts speciality retailer within an US$33 billion market. Competition in the highly fragmented market includes small, independent retailers, along with a few regional and national chains.
Walmart and Target, which is set to open stores in Canada early next year to replace Zellers, sell high volumes but offer more limited selection of home decor, arts and crafts supplies and seasonal merchandise.
Dollarama (TSX:DOL) sells basic party decoration and arts supplies.
In its annual report, Michaels said customers choose where to shop based on store location, breadth of selection, price, quality of merchandise, availability of product, and customer service.
Michaels employs about 45,300 non-union workers, including 34,600 who are part-time.
News from © The Canadian Press, 2012