Michaels to open Mira Mesa store next year

Arts and crafts retailer Michaels is taking up residence in Mira Mesa with a 21,300-square-foot store being constructed at the west end of the Village at Mira Mesa.

The store, scheduled to open in the second quarter of 2019, is being built in the empty lot alongside the space formerly occupied by Kohls. The asphalt was cleared this past week, a spokesperson for the property’s owner, Brixmor, said.

Located at 8110 to 8340 Mira Mesa Blvd., the Village at Mira Mesa, sometimes to referred as the Mira Mesa Mall, is home to Bed Bath & Beyond, Marshalls, Petco, CVS, Vons and Chipotle. It draws an average of 23,000 customers per week, according to a leasing brochure for the center.

The neighborhood shopping center has seen tenants large and small come and go in recent years, with the 2016 closing of Kohls leaving the west end noticeably vacant. The new Michaels store joins the recently opened Sprouts and BevMo! stores, along with a Five Below store slated to open next year, in revitalizing the section near Reagan Road.

In total, there are 1,251 Michaels stores in the U.S. and Canada, with 14 scattered around San Diego County. Parent company The Michaels Company, which also owns and operates Aaron Brothers and Pat Catan’s, is publicly traded; it had net sales of $5.36 billion for its 2017 fiscal year, which ended on Feb. 3.

The new store is being built during a challenging time not just for large brick-and-mortar retailers, but for the arts and crafts sector specifically. Michaels competes directly with privately held companies Hobby Lobby and Joann, which have four and five stores in the San Diego region, respectively.

“Data suggests that the core arts and crafts industry isn’t currently growing total sales,” Michaels’ CEO Chuck Rubin told analysts following the company’s most earnings report.

Meanwhile, discount stores, such as the teen-friendly brand Five Below that will sit next to Michaels in Mira Mesa, have become the leading hobby and toy retailers in the U.S. over the past five years, according to research outfit IBISWorld’s report on the market.

In response, Irving, Texas-based Michaels is considering how best to broaden its appeal beyond craft enthusiasts, as well as attract more parents who want to their kids to participate in more screen-free activities, Ruben told analysts.

[email protected] (619) 293-1840 Twitter: @jbruin