Business Overview

Craft store businesses provide the necessary supplies for creating unique handmade items for shoppers who prefer originality over mass production. A craft store business can exist online, in a physical location, or both. Some craft store businesses sell a wide range of various types of arts and crafts supplies, while others cater to specialized niche markets.

Who is this business right for?

This type of business is ideal for people who enjoy providing supplies for people to participate in creating various types of arts and crafts.

What happens during a typical day at a craft store?

Here are some of the typical activities a craft store business owner might engage in on a daily basis:

  • Pricing craft supplies based on market research and customer feedback
  • Writing product descriptions
  • Photographing sale items and updating website content
  • Conducting inventory, negotiating prices with vendors, and ordering supplies
  • Filling and shipping orders
  • Attending craft workshops to get ideas for new classes and activities to provide for customers

What is the target market?

Preferred clients are those who enjoy participating in arts and crafts projects for gift-giving and home decoration or those who appreciate products that demonstrate the artistic and creative talents of others.

How does a craft store make money?

One way a craft store business makes money is by buying craft supplies in bulk at wholesale prices and reselling them at a profit. Another, less common way this type of business makes money is by designing and creating original arts and crafts products. Some craft stores sell those products directly to other craft stores, while others charge a royalty fee for the use of their original designs.

What is the growth potential for a craft store?

Some craft stores, such as Michaels, have expanded nationwide. The nation’s largest craft store business, Michaels has 1,262 stores, each of which sell an average of 40,000 different items. produces 10 exclusive private brands. As of June, 2014, the company, which also produces 10 exclusive private brands, was valued at $3.86 billion dollars.