Michaels is taking its store makeover up a notch with a third experiential location, and rewards members are getting a major perk.

The arts and crafts retailer’s third “Next Gen” location will be in Rogers, Arkansas, as the company tests new ways to make the in-store experience more convenient and hands-on, Michaels announced Friday. This follows earlier concept locations in Easton, Ohio, and Irving, Texas.

One of the biggest changes is the prominently placed Knit & Sew Shop near the front of the store. Michaels launched the concept in 2025 after acquiring intellectual property and private-label brands from its defunct rival Joann. The section offers the retailer’s largest-ever fabric and textile selection, along with a Swatch bar showcasing 1,000 online fabric samples that shoppers can browse, scan and order.

Michaels Rewards members will get a dedicated self-checkout line, while buy-online, pick-up-in-store stations have been moved closer to the entrance.

The stores also feature expanded fine arts and floral sections, along with upgraded framing and personalization services. A new custom bar offers embroidery, engraving and made-to-order stickers, while a 10-minute custom framing service lets shoppers print and frame a photo for $29.

Michaels is also expanding its Party Shop with more products, a balloon bar and a space for birthday parties, classes and community events.

Other interactive features include candy, favor, charmed and patch bars for creating personalized party favors, jewelry, clothing and more. A marker bar launching chainwide will let shoppers customize Artist Loft markers starting at 99 cents.

The stores also include a Pinterest trend bar that showcases popular creative trends and an updated welcome center.

Michaels said the three test stores will help the company determine which new features could eventually be rolled out across its nearly 1,300 locations in North America, with more concept stores planned throughout the year.

“Our new stores represent an exciting milestone within Michaels’ broader transformation to redefine the customer journey and become a true destination for creativity and celebration,” David Boone, CEO of Michaels, said in a statement. “The new format reflects our customers’ desire for more inspiration and hands-on, analog experiences, while providing a space for the local community to connect, create, and celebrate.”

The expansion comes as Michaels continues to fill the market space left by Joann and Party City. Fabric is now available in more than 840 Michaels stores, with plans to add it to more than 250 additional stores, while fabric space has grown nearly 25 percent.

Michaels is also growing its party business. Its party shop, launched chainwide in 2025, now has 60 percent more dedicated products, including nearly 600 new items such as piñatas, licensed character merchandise and entertaining supplies.