Jo-Ann Stores (Hudson, Ohio) has announced that it will halt its new-superstore expansion program, close some more underperforming stores and eliminate 8 percent of its workforce (mostly in the corporate office).
The fabric and crafts retailer has been suffering from declining profits. It reported a $6.4 million loss in its first quarter, ended May 5, 2001, compared with earnings of $3 million in the same quarter the prior year. Over the past three years, the company has invested more than $210 million on new information systems, a new West Coast distribution center and the opening of more than 50 Jo-Ann etc superstores.
“Our strong sales performance over the past two months, although benefiting in part from the effect of our sku reduction initiative, is very encouraging and, we believe, indicative of the strength of our core business,” said chairman and ceo Alan Rosskamm. “However, our efforts will not translate into improved operating performance until the fourth quarter of this year.”
Jo-Ann (formerly Fabri-Centers of America) operates more than 1000 Jo-Ann Fabrics and Crafts and Jo-Ann etc stores in 49 states. The Jo-Ann etc superstore concept: called for 46,000-square-foot stores offering a range of arts and crafts supplies, home-decorating items, and holiday merchandise, as well as how-to classes.