Michaels weaves $180M marketing plan

Michaels is partnering with a new ad agency on a $180 million marketing plan as the arts and crafts retailer looks to weave a quilt of higher sales and market share.

Zimmerman Advertising will perform a range of key functions for Michaels, working with a total marketing budget of $180 million and focusing on strategic planning, analytics, digital media planning and buying and social media.

"To gain market share, you need an agency that knows how to fight for it. For us, that agency is Zimmerman," said Steve Carlotti, EVP of marketing at Michaels. "They're fully integrated, driven by metrics, and together we expect great things to happen."

For the third quarter that ended Nov. 1, Michaels reported a decline in same store sales of 0.8%. Total sales increased 1.1% to $1.13 billion, thanks to the addition of 19 new Michaels and five new Aaron Brothers stores. Despite the weak top line performance, profits increased 36.2% to $64 million compared to $47 million while earnings per share increased 19.2% to 31 cents from 26 cents.

Michaels operates 1,166 Michaels stores in 49 U.S. states and Canada. Michaels also owns and operates 121 Aaron Brothers stores.

Zimmerman Advertising is an Omnicom Group company and one of the largest full-service advertising agencies in the United States, with more than 1,100 full-time employees and offices throughout the country, including New York, Los Angeles, Chicago, Dallas and Atlanta. Omnicom Group is a global marketing and corporate communications company. Omnicom's branded networks and numerous specialty firms provide advertising, strategic media planning and buying, direct and promotional marketing, public relations and other specialty communications services to more than 5,000 clients in more than 100 countries.