An Overview of Hobby Lobby
Hobby Lobby, a prominent arts and crafts retailer, has grown from humble beginnings to become a major player in the industry. Founded in a basement with a $600 loan, the company has expanded its reach across the United States, offering a wide range of arts, crafts, and holiday decor products (Media Shower). With approximately 932 stores in 47 states, Hobby Lobby stands as one of the largest privately-owned arts-and-crafts retailers in the world.
Introduction to Hobby Lobby
Hobby Lobby has established itself as a go-to destination for individuals seeking creative supplies and home decor items. The company caters to a diverse customer base, including artists, crafters, DIY enthusiasts, and individuals looking to add a personal touch to their living spaces. Hobby Lobby offers a wide range of products, including art supplies, fabrics, floral arrangements, home accents, and seasonal decorations.
Growth and Expansion
Hobby Lobby’s growth and expansion have been remarkable. In 2020 alone, the company opened 33 new stores, with plans to open an additional 22 stores in 2021, demonstrating its commitment to expansion and meeting customer demand (OSUM). This steady growth has allowed Hobby Lobby to reach customers in various locations across the United States, making their products easily accessible to a wide range of consumers.
The financial performance of Hobby Lobby has been impressive as well. In 2019, the company’s revenue grew by 7.53% to reach $5.5 billion, highlighting its strong financial performance and consistent revenue growth (OSUM). This growth can be attributed to factors such as effective marketing strategies, a loyal customer base, and a diverse product offering.
Hobby Lobby’s success can also be attributed to its strong brand image and customer loyalty. The company has cultivated a positive reputation among its target market, positioning itself as a reliable and trusted provider of arts and crafts supplies. This has allowed Hobby Lobby to effectively compete with larger chains like Michaels, demonstrating its ability to thrive in the competitive arts-and-crafts retail market (OSUM).
As Hobby Lobby continues to expand its footprint and enhance its market presence, its commitment to providing quality products and exceptional customer service remains at the core of its operations. With a strong foundation and a dedicated customer base, Hobby Lobby is positioned for continued success in the arts and crafts retail industry.
Hobby Lobby’s Marketing Strategies
To establish itself as a prominent player in the retail industry, Hobby Lobby has implemented various effective marketing strategies. These strategies have helped the company attract and retain customers, driving its success in the market. Let’s explore three key marketing strategies utilized by Hobby Lobby: time-sensitive mobile advertising, an affiliate marketing program, and traditional TV commercials.
Time-Sensitive Mobile Advertising
Hobby Lobby leverages time-sensitive mobile advertising to capture the attention of potential customers and drive them to its stores. As highlighted by Media Shower, the company features 40% off coupons on high-traffic mobile destinations, such as news sites. These coupons entice users to take advantage of the limited-time offer, creating a sense of urgency and encouraging immediate action.
By strategically placing these mobile advertisements, Hobby Lobby effectively reaches a wide audience, especially those who frequently browse the internet on their mobile devices. This marketing tactic not only drives foot traffic to the physical stores but also boosts online sales, as users are directed to the company’s website to redeem the coupons.
Affiliate Marketing Program
Hobby Lobby has implemented an affiliate marketing program, collaborating with bloggers and website owners to expand its reach and generate more sales. Through this program, affiliates earn commissions when users make purchases through custom referral links placed on their platforms.
By partnering with bloggers and website owners who have a relevant target audience, Hobby Lobby can tap into new markets and increase its brand visibility. This strategy leverages the influence and trust that affiliates have built with their audience, making it an effective way to drive traffic and conversions.
Traditional TV Commercials
Despite the digital age, Hobby Lobby recognizes the power of traditional TV commercials in reaching a wide audience. The company continues to run TV commercials across the country, focusing on specific products or promotions. This allows Hobby Lobby to effectively showcase its offerings to a broad range of potential customers.
TV commercials provide Hobby Lobby with a platform to visually engage viewers and highlight the unique features and benefits of its products. By airing commercials during popular television programs and at strategic times, the company maximizes its exposure and remains top-of-mind among consumers.
These marketing strategies have played a significant role in Hobby Lobby’s success and have contributed to its position as a go-to destination for holiday shoppers. The combination of time-sensitive mobile advertising, an affiliate marketing program, and traditional TV commercials has allowed Hobby Lobby to effectively reach and engage its target market, driving both online and offline sales.
The Crafts and Hobby Market
Understanding the market size and growth of the crafts and hobby industry is essential for analyzing the positioning and potential of Hobby Lobby. This section will delve into the market size and explore popular creative activities within this industry.
Market Size and Growth
In 2020, the craft and hobby market in the United States had an estimated value of approximately $32 billion, reflecting a significant increase from previous years (Statista). The market’s growth can be attributed to the increasing interest of individuals in engaging in creative activities as a means of personal fulfillment, relaxation, and self-expression.
Looking at the global perspective, the arts and crafts market is projected to reach $50 billion by 2025, with an estimated growth rate of 5% from 2020 to 2025. This demonstrates the continued demand and potential for growth within the industry.
Popular Creative Activities
Within the crafts and hobby market, there are various creative activities that capture the interest of individuals. In 2020, over 62 million Americans participated in painting, drawing, or coloring as a craft or hobby. This highlights the widespread popularity of these activities and their appeal to individuals seeking personal fulfillment and relaxation.
Other popular creative activities include:
- Scrapbooking: The art of preserving memories through photographs, journaling, and decorative elements.
- Jewelry Making: The creation of unique and personalized jewelry pieces using various materials such as beads, gemstones, and metals.
- Sewing and Knitting: The practice of stitching fabric or yarn to create clothing, accessories, and decorative items.
- Woodworking: The craft of shaping and creating objects from wood, ranging from furniture to intricate carvings.
- Paper Crafts: The art of working with paper to create items such as cards, origami, and paper sculptures.
These activities, among others, not only provide individuals with a creative outlet but also offer therapeutic benefits, promoting relaxation, stress relief, and mindfulness (Statista).
Understanding the market size and popular creative activities within the crafts and hobby industry provides valuable insights into the potential customer base and the demand for products and services offered by retailers like Hobby Lobby. By catering to the interests and preferences of individuals engaging in these activities, Hobby Lobby can effectively position itself in the market and capture a significant share of the industry’s growth.
Hobby Lobby’s Strengths
To understand the position of Hobby Lobby in the market, it is essential to examine the factors that contribute to its success. Hobby Lobby possesses several strengths that have propelled its growth and established its prominence in the arts and crafts retail industry.
Number of Stores and Expansion
Hobby Lobby operates approximately 932 stores across 47 states, making it one of the largest privately-owned arts-and-crafts retailers in the world (OSUM). This extensive presence allows the company to reach a wide customer base and cater to the diverse needs of crafters and DIY enthusiasts. In 2020 alone, Hobby Lobby opened 33 new stores and has plans to open 22 more in 2021, demonstrating its commitment to continuous growth and expansion. This strategic expansion enables Hobby Lobby to increase its market share and establish a strong foothold in various regions.
Financial Performance and Revenue Growth
Hobby Lobby’s financial performance has been impressive, showcasing consistent revenue growth and stability. In 2019, the company’s revenue reached $5.5 billion, marking a growth of 7.53% compared to the previous year. This substantial revenue growth is a testament to the effectiveness of Hobby Lobby’s business strategies and its ability to generate customer demand. By maintaining a strong financial position, Hobby Lobby can invest in new store openings, product expansions, and marketing initiatives to further enhance its market presence.
Strong Brand Image and Customer Loyalty
One of Hobby Lobby’s key strengths lies in its strong brand image and the loyalty it has garnered from its customers. The company has established itself as a trusted name in the arts and crafts retail market, attracting a dedicated customer base. Hobby Lobby’s commitment to offering a wide range of products, including seasonal items and exclusive merchandise, has resonated with crafters and DIY enthusiasts, cementing its reputation as a go-to destination for creative supplies (OSUM).
Moreover, Hobby Lobby’s emphasis on customer service and fostering a welcoming in-store experience has contributed to its customer loyalty. By prioritizing the needs and satisfaction of its customers, Hobby Lobby has built lasting relationships and generated positive word-of-mouth, further enhancing its brand image.
In summary, Hobby Lobby’s strengths encompass its expansive store network, consistent revenue growth, and strong brand image, all of which have solidified its position as a leader in the arts and crafts retail market. With its continued focus on expansion and customer-centric approach, Hobby Lobby is well-positioned to maintain its competitive edge and further capitalize on the opportunities within the market.
The Success Story of Hobby Lobby
Hobby Lobby’s journey from a small startup to a prominent player in the arts, crafts, and home decor industry is an inspiring success story. Let’s explore the founder and origins of the company, their unique debt-free business model, and the book that chronicles their remarkable journey.
Founder and Origins
Hobby Lobby was founded by David Green in 1972. With a vision to provide a wide range of arts, crafts, and holiday decor products, Green started the business with just $600 in a modest 300-square-foot retail space in Oklahoma City (Investor’s Business Daily). Through his dedication and entrepreneurial spirit, Green successfully transformed this small venture into the retail giant we know today.
Debt-Free Business Model
One of the key factors that sets Hobby Lobby apart is its unique and impressive debt-free business model. Unlike many businesses that rely on loans and credit, Hobby Lobby has operated without borrowing money or using credit throughout its existence. This approach has allowed the company to maintain financial stability and make strategic decisions based on their own resources (Investor’s Business Daily). By avoiding debt, Hobby Lobby has been able to navigate economic challenges and focus on long-term growth and sustainability.
Book: “More Than a Hobby”
To share the remarkable story of Hobby Lobby’s journey, founder David Green authored the book “More Than a Hobby: How a $600 Start-Up Became America’s Home and Craft Superstore.” In this book, Green provides an in-depth account of the company’s humble beginnings, the challenges they faced, and the strategies they employed to build a successful business. This book serves as an inspiration for aspiring entrepreneurs and offers valuable insights into the strategies and principles that have contributed to Hobby Lobby’s growth and success.
The success story of Hobby Lobby is a testament to the dedication, perseverance, and innovative thinking of its founder, David Green. Through his vision and commitment to excellence, Hobby Lobby has become a household name in the arts, crafts, and home decor market. Their debt-free business model and the book “More Than a Hobby” exemplify the values and strategies that have propelled the company to its current position of prominence in the retail industry.
Hobby Lobby’s Online Presence
In today’s digital age, a strong online presence is crucial for any retail company. Hobby Lobby recognizes the importance of an effective online strategy and has established a notable presence in the digital realm. Let’s take a closer look at Hobby Lobby’s online presence, including website traffic and engagement, traffic sources, and online growth trends.
Website Traffic and Engagement
Hobby Lobby’s website, hobbylobby.com, has experienced significant traffic over the past months. According to SimilarWeb, the website had an average of 7.85 million visits per month in the last six months. This high volume of traffic indicates the popularity and appeal of Hobby Lobby’s products and offerings to customers.
Moreover, the website boasts an impressive level of engagement. On average, visitors spend approximately 9 minutes and 48 seconds on the site, with an average of 10.69 pages viewed per visit. These metrics demonstrate a high level of user interest and engagement with the content provided on hobbylobby.com.
Traffic Sources
When it comes to the sources of traffic to hobbylobby.com, the majority (31.31%) comes from direct visits. This indicates that a significant portion of visitors are either returning customers or people who directly type the website’s URL into their browsers, showcasing an established customer base.
Organic search contributes to 25.22% of the website’s traffic, illustrating the effectiveness of Hobby Lobby’s search engine optimization efforts. By optimizing their website for relevant keywords and phrases, Hobby Lobby ensures that potential customers can easily find their products and services through search engines.
Referrals account for 19.63% of the website’s traffic, indicating that other websites and platforms play a role in driving visitors to hobbylobby.com. Additionally, social media contributes to 6.15% of the website’s traffic, highlighting the potential impact of Hobby Lobby’s social media marketing efforts in attracting visitors to their online platform.
Online Growth Trends
Hobby Lobby’s online presence continues to thrive, with positive growth trends observed over the past months. The website’s traffic has increased by 4.38% in the last three months, indicating a growing popularity and interest in Hobby Lobby’s offerings.
These trends suggest that Hobby Lobby’s online presence is resonating well with customers and is successfully attracting and retaining their attention. By consistently providing engaging content and a user-friendly online experience, Hobby Lobby strengthens its position as a prominent player in the retail industry.
Hobby Lobby’s robust online presence, characterized by substantial website traffic, high engagement levels, and positive growth trends, showcases the company’s commitment to meeting the needs and expectations of their digital-savvy customers. As the retail landscape continues to evolve, Hobby Lobby’s online presence positions them for continued success in the digital realm.
Competition in the Retail Industry
When analyzing the retail industry, it’s important to consider the competitors that exist within specific markets. In the case of Hobby Lobby, the company faces competition from various players in the arts and crafts market. Additionally, understanding employee ratings and comparisons can provide valuable insights into the company’s standing in the industry.
Competitors in the Arts and Crafts Market
Hobby Lobby operates in the arts and crafts market, where it competes with companies such as Michaels, Joann, and Walmart. These competitors offer a range of arts and crafts supplies, home decor, and seasonal items, catering to similar customer needs and interests.
One of the primary competitors in this market is Michaels. According to employee ratings on Comparably, Michaels has a higher overall rating compared to Hobby Lobby in terms of benefits, compensation, work-life balance, and culture. This indicates that Michaels may have a competitive edge in terms of employee satisfaction.
Another significant player in the arts and crafts market is Joann. Similar to Michaels, Joann also has a higher overall rating compared to Hobby Lobby for benefits, compensation, and culture, according to employee ratings on Comparably. This suggests that Joann may be a strong competitor in terms of attracting and retaining talent.
Walmart, a well-known retail giant, also competes with Hobby Lobby in the arts and crafts market. While Hobby Lobby’s overall employee ratings are not specified in the available data, Hobby Lobby scores higher than Walmart in terms of compensation. However, it’s worth noting that Michaels leads in terms of compensation among these competitors.
Employee Ratings and Comparisons
Employee ratings and comparisons provide insights into the overall employee experience and satisfaction at Hobby Lobby compared to its competitors. According to the available data on Comparably, Hobby Lobby has an average overall rating of 67/100 based on employee feedback. The breakdown of ratings shows that Hobby Lobby scores 68/100 for compensation and 68/100 for culture. However, Hobby Lobby scores lower in the benefits category with a rating of 59/100 and slightly lower in work-life balance with a rating of 65/100.
When it comes to CEO approval and recommendation rates, employees at Hobby Lobby rate the CEO with a score of 81/100, and 62% approve of the CEO. The company is also rated positively for diversity (70/100), and a significant percentage of employees would recommend working at Hobby Lobby to a friend (65/100).
In terms of compensation, Hobby Lobby scores 68/100, which is higher than Joann (66/100) and Walmart (65/100), but lower than Michaels (71/100). The culture rating for Hobby Lobby is 68/100, with Michaels rated higher at 71/100, Joann at 69/100, and Walmart at 65/100. However, Hobby Lobby’s benefits rating is the lowest among its competitors, at 59/100, with Joann at 60/100, Walmart at 61/100, and Michaels leading at 65/100.
Understanding employee ratings and comparisons provides valuable insights into the competitive landscape and can help identify areas of strength and improvement for Hobby Lobby in the retail industry.
The Future of the Crafts and Hobby Market
As the crafts and hobby market continues to evolve, it is essential to analyze the projected market growth, the impact of online shopping and home-based hobbies, and the key players in the industry.
Projected Market Growth
The global arts and crafts market is expected to reach $50 billion by 2025, with an estimated 5% growth rate from 2020 to 2025. In the United States, the market for crafts and hobby products was valued at $36,089 million in 2020, and it is projected to have a compound annual growth rate (CAGR) of 4.1% from 2021 to 2025. These statistics highlight the continued growth and potential of the crafts and hobby industry (Nasdaq, Statista).
Impact of Online Shopping and Home-Based Hobbies
The rise of online shopping and the increase in home-based hobbies have significantly impacted the crafts and hobby retail market. With the convenience and accessibility of e-commerce platforms, consumers can easily browse and purchase craft supplies from the comfort of their homes. This shift towards online shopping has opened up new opportunities for both established retailers and emerging players in the market.
Furthermore, the growing popularity of home-based hobbies, especially during the COVID-19 pandemic, has led to an increased demand for craft supplies. Many individuals have turned to creative activities as a way to relax, express themselves, and develop new skills. The combination of online shopping and the appeal of home-based hobbies has contributed to the continued growth and resilience of the crafts and hobby market.
Key Players in the Market
In the United States crafts and hobby market, several key players have established themselves as industry leaders. These companies have carved out unique market positions and cater to different segments of the consumer base. Some of the prominent players in the market include:
- Hobby Lobby: Known for its wide range of craft supplies, home decor, and seasonal items, Hobby Lobby has built a strong brand image and a loyal customer base. Their focus on providing a variety of high-quality products and their commitment to religious values have contributed to their success.
- Michaels: Michaels is one of the largest arts and crafts retail chains in the United States. They offer a diverse selection of craft supplies, custom framing services, and in-store crafting workshops. Michaels has established itself as a go-to destination for both beginner and experienced crafters.
- Joann: Joann is another major player in the crafts and hobby market. They provide a wide range of fabrics, sewing and quilting supplies, and crafting materials. Joann has a strong online presence and offers various resources, including tutorials and project inspiration, to support and engage their customer base.
These key players, along with other retailers and online platforms, will continue to shape the future of the crafts and hobby market. As the industry evolves, it will be essential for companies to adapt to changing consumer preferences, leverage technology and digital platforms, and continually innovate to stay competitive in the market (Nasdaq).
By understanding the projected market growth, the impact of online shopping and home-based hobbies, and the key players in the industry, retailers can position themselves for success in the dynamic and ever-expanding crafts and hobby market.
