What Wharton experts say about Joann Fabrics’ closure:
CAIT LAMBERTON SAYS RETAIL IS TOUGH, BUT WHAT JOANN DOES IS EVEN TOUGHER. It’s not that the demand isn’t there. It’s just their cost structure and the nature of the business itself made it very hard to survive right now.
It matters if they get rid of a velvet or a lace or a tie dye, because for somebody, that’s the thing they wanted. They need enormous amounts of space, enormous amounts of inventory, and they’re often located in areas that have been seeing declines in foot traffic. (source)
