Michaels Sweetens Loyalty Program to Drive Customer Retention

Event summary

  • Michaels has revamped its loyalty program, introducing a new 9% rewards tier for top spenders.
  • The program now features three tiers: Red (3%), Gold (6%, $300 annual spend), and Platinum (9%, $1,000 annual spend).
  • Credit cardholders receive enhanced benefits, including a 30% daily discount and an extra 10% off custom framing.
  • Michaels is expanding its loyalty program to Canada, launching next month.
  • Existing loyalty members and cardholders were automatically transitioned to the new structure as of March 1, 2026.

The big picture

Michaels' loyalty program overhaul reflects a broader trend among retailers to leverage tiered rewards and personalized incentives to combat rising competition and retain customers in a challenging economic environment. The move to a 9% rewards tier signals a willingness to increase investment in customer acquisition and retention, potentially impacting margins. The Canadian expansion suggests an ambition to grow beyond the existing North American footprint, but also introduces new operational and regulatory complexities.

What we're watching

Tiered Adoption
The success of the program hinges on driving customers to the higher tiers; Michaels must monitor spend patterns to assess if the $300 and $1,000 thresholds are effective in segmenting and incentivizing loyalty.
Canadian Impact
The Canadian expansion represents a new market test; performance there will indicate the program's scalability and adaptability to different consumer behaviors.
Cardholder Migration
Michaels should track the impact of the enhanced credit card benefits on card acquisition and usage rates, as these perks represent a significant investment.