Michaels Changes Loyalty Program, Rewarding Highest Spenders

Michaels said Monday it is expanding its loyalty program to reward its most loyal customers. The Texas-based company announced a new 9 percent platinum rewards tier for those who spend $1,000 annually. Red members earn 3 percent after joining, and gold members earn 6 percent after spending $300 annually.

"These updates reflect Michaels' ongoing commitment to providing a best-in-class shopping experience by delivering exceptional value to customers — no matter what they're shopping for," the company said in a press release.

Loyalty card holders receive periodic free shipping, 20 percent off their first purchase, special financing officers, no annual spend requirements, and new birthday and everyday perks. Michaels also teased the launch of its loyalty program for Canadian shoppers next month.

Total Retail's Take: Michaels’ revamped loyalty program reflects a broader shift among retailers toward deeper segmentation and value-based rewards designed to drive higher lifetime customer value. By introducing a 9 percent rewards tier for customers spending $1,000 annually, Michaels is clearly signaling that its most engaged shoppers — hobbyists, frequent DIYers and small-scale creators — are a strategic growth lever.

The move also underscores how loyalty programs are increasingly becoming a primary retention tool rather than just a promotional incentive. For specialty retailers such as Michaels facing competition from mass merchants and marketplaces, better loyalty incentives can help offset price competition by emphasizing value, convenience and community.