Recollections test gets passing marks - scrapbook store concept from Michaels Stores - Company Profile

DSN Retailing Today, Oct 27, 2003 by Debbie Howell

IRVING, TEXAS -- A test scrapbooking store concept launched by Michaels Stores in Dallas this summer apparently has proven its worthiness and will expand to three new markets next year.

Recollections, which recently added its second store in the Dallas market, will now move to Phoenix, Atlanta and Washington, D.C., the company announced earlier this month. The chain is the first devoted to the fast-growing hobby of scrapbooking---or making artistic memory albums--to be launched by a national retailer, though a few small chains and numerous independents operate such stores.

"So far, Recollections has proven to be a great concept, and given our early success, we are planning to open another 10 stores in the coming year," said Sam Crowley, senior vp of new ventures.

Though Michaels hasn't divulged specific performance of the new concept, two well-known but small scrapbooking chains bring in an estimated $800,000 to $2 million per store--Minnesota-based Archiver's and Memories of Utah. This retail niche is pegged a $2 billion market that has been growing 50% annually.

While regular Michaels craft stores carry a wide assortment of scrapbooking supplies selection is much Recollections, with about 10,000 SKUs. In addition, services and features cater to the scrapbooking enthusiast, such as a large crop room where shoppers can work on their memory books.

"There is a large segment of scrapbookers who want more rapidly changing assortments, more personalized service and broader selections than a traditional craft store provides," said Crowley in a press statement. "More importantly, however, scrapbookers seek the fun and social interaction that comes from participating in their unique craft."

Michaels Stores, the nation's largest craft retailer that generated $2.85 billion last year, has actively sought out new growth opportunities to complement its core 791-store craft chain, Michaels. Recollections is the newest addition, with other banners that include Aaron Brothers and a scaled-down Michaels format for smaller markets called Village Crafts. Another business is Star Decorators Wholesale Warehouse, a wholesale concept with single stores in Dallas and Atlanta.