The emergence of smaller specialty retailers has fueled the growth of many big-box stores, including Hobby Lobby. The company has a broad assortment but also a niche customer base. Most of its customers are women, ranging from the lower middle class to the upper-middle class. The store’s locations are ideal for those who want to shop for decorative items rather than necessities.
Company’s Current Operations
In 1994, Hobby Lobby opened its first store in Oklahoma City, with about 600,000 square feet. That space was more than enough to house the company’s current operations, and a 5,000-square-foot manufacturing facility was built. In addition to its retail stores, the company also manufactures candles, potpourri, and frames and employs more than 500 people. This year, Hobby Lobby is set to complete a one-million-square-foot expansion.
Massive Office Complex
The retail giant has taken this idea to another level. The company has a mock store at its headquarters, but the public doesn’t visit it. Instead, it’s used by merchandisers and display people to ensure that the store will sell precisely what the customer is looking for. The company has over 10 million square feet of manufacturing space and a massive office complex in Oklahoma City.
The chain’s popularity has led to over 840 stores nationwide. In the United States, Hobby Lobby has over 800 stores. In 2017, the company opened 63 new locations. It plans to open 60 more stores next year. Most of the locations never open on Sundays, and the store is never closed. The store has a low turnover rate as part of its employee-friendly approach. Its stores are also friendly to employees, with some workers earning double the minimum wage.
Hobby Lobby has been filling empty big-box stores in the last few months. The Oklahoma City-based craft-supply company is helping to prevent the national retail vacancy rate from rising. The company is filling up vacant big-box stores left by other retailers. It has also opened a 53,800-square-foot Macy’s in Albuquerque, New Mexico, and a former JCPenney location in Martinsburg, West Virginia.
While the company has a large warehouse that provides all its stores with fresh inventory, most stores have fewer than six thousand items. The company is also a leader in sourcing, which sources all its things from its nine-million-square-foot warehouse in Texas. In Q4’17, the company saw same-store sales growth of 4%, up from a year ago.
Home Decor & Crafting Items
It has been a significant part of the trend of filling large-box stores, with most stores being smaller and offering fewer products. Hobby Lobby has over 840 locations nationwide and averages five-thousand square-foot space. The store also offers over six-hundred home decor and crafting items. And since it is an American staple, it isn’t challenging to find a new location.
While Hobby Lobby is one of the most successful craft supplies retailers, it is also a massive player in the retail industry. The Oklahoma City-based craft-supply company is a $3 billion enterprise. The store’s average square-foot footprint is about five-thousand square-foot. Its products range from craft materials to home decor. And it offers more than 67,000 SKUs. It is not a small-box store. It provides the same selection as many big-box stores.
Mardel Christian & Education Stores
Unlike many other big-box retailers, Hobby Lobby’s growth is a slow-burning trend. The company was first started in the garage of founders Don Green and his wife. Today, the business remains a family affair. The Greens’ two sons, Steve and Darsee, lead the Mardel Christian and Education Stores and Hobby Lobby and Mardel, respectively. Despite the slowdown, the family business remains in the same family as before and has grown into a more successful company.
The company’s human resources philosophy is centered around the store opening process. The company has co-managers in each of its stores, grooming them to take over new locations as the chain grows. They are also part of the trend-filling strategy. By hiring a new store, it expands its brand in the market. It’s no secret that the human resources team of a big-box retailer is essential to the success of a business.