What is Brief History of Hobby Lobby Stores Company?

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What is the history of Hobby Lobby?

Hobby Lobby began in 1970 with a small loan and a big idea. David Green started making miniature picture frames from his garage, laying the groundwork for a retail giant.

The first store opened in Oklahoma City in 1972, focusing on arts, crafts, and home decor. This humble beginning marked the start of a remarkable expansion.

What is the brief history of Hobby Lobby Stores Company?

The company's journey from a garage operation to the largest privately owned arts-and-crafts retailer globally is a testament to its growth. As of 2024, it boasts over 1,000 stores in 48 states, employing around 46,000 people and generating $8.0 billion in annual revenue. This impressive scale offers a fascinating case for analysis, including its Hobby Lobby Stores BCG Matrix.

The Hobby Lobby company origins trace back to 1970 when David and Barbara Green began a miniature picture frame business from their garage. This venture, initially funded by a $600 loan, laid the groundwork for what would become a major retail chain. The official commencement of Hobby Lobby Stores, Inc. operations occurred on August 3, 1972, in Oklahoma City, Oklahoma.

The Founding Story of Hobby Lobby

The Hobby Lobby founding story is rooted in a small loan and a vision for the arts and crafts market. David Green, leveraging his prior retail experience, identified a niche for custom picture frames, which evolved into the expansive craft store known today.

• Hobby Lobby Stores, Inc. officially began operations on August 3, 1972.
• The initial business, Greco Products, started in 1970 with a $600 loan.
• David Green, the Hobby Lobby founder, had previous experience at TG&Y.
• Christian-based values have guided the company since its inception, including Sunday closures.
• The early business model focused on selling custom picture frames.
• The Brief History of Hobby Lobby Stores details this development.

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The Hobby Lobby history began with a rapid expansion of its retail footprint in its early years. Following the opening of a second store in Oklahoma City in 1975, a third store was established in Tulsa, Oklahoma, the following year. By the middle of 1982, the company had expanded to seven stores, marking significant growth from its initial beginnings.

Early Expansion and Diversification

The Hobby Lobby company origins trace back to a period of aggressive expansion. In 1984, the company opened its first store outside of Oklahoma, signaling a broader reach. During the early 1980s, a diversification into luxury goods like furniture and cookware was attempted, a strategy that proved challenging during an economic downturn.

Return to Core Focus and Profitability

The business story of Hobby Lobby saw a crucial pivot back to its core arts and crafts merchandise. This strategic shift successfully returned the company to profitability by 1986, by which time it operated 12 stores. This period solidified the company's commitment to its foundational product categories.

Founding of Supporting Businesses

Key developments in the Hobby Lobby development phase included the establishment of wholesale arts and crafts company Crafts Etc. and real estate company H.L. Realty in 1977. In 1981, the founder David Green's son, Mart, founded Mardel, a Christian bookstore chain, further broadening the family's business ventures.

Accelerated Growth and National Presence

By late 1992, Hobby Lobby had expanded to 50 locations across seven U.S. states. The company continued its aggressive expansion, opening 30 new stores in ten new states in 1999 alone. By 2014, Hobby Lobby had over 525 retail locations nationwide, and by 2024, it reported operating over 1,001 stores in 48 states with approximately 46,000 employees, demonstrating its significant growth. The company's expansion strategy often involves repurposing existing large retail spaces, which can reduce startup costs by an estimated 50-70%. As of May 2025, new store openings were planned for locations like Danbury and Norwalk, Connecticut, further cementing its reach and illustrating the ongoing Hobby Lobby company timeline history. Understanding the Competitors Landscape of Hobby Lobby Stores provides context for this impressive growth.

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Hobby Lobby's journey is a narrative of strategic growth, unique retail approaches, and navigating significant public and legal challenges. The company's development showcases a blend of business acumen and adherence to its foundational values, impacting its trajectory in the retail landscape.

A key innovation in Hobby Lobby's retail strategy is its consistent focus on offering a vast selection of over 70,000 items, encompassing home decor, seasonal items, and a wide array of craft supplies, all at competitive price points. This is further enhanced by a popular weekly 40% off coupon, a long-standing customer incentive that drives traffic and sales.

Extensive Product Variety

Hobby Lobby offers a diverse inventory exceeding 70,000 products, catering to a broad range of customer needs in crafts, home decor, and seasonal items.

Weekly 40% Off Coupon

The consistent availability of a 40% off coupon is a significant draw for customers, encouraging frequent visits and purchases.

Christian Message Advertisements

Since 1997, the company has integrated Christian messages into its advertising during major holidays, reflecting its core values.

Upscale Home Furnishings Concept

The launch of Hemispheres in 2001 represented an expansion into a more specialized, upscale market segment for home furnishings.

Hobby Lobby has encountered significant challenges, including a landmark Supreme Court case in 2014 concerning religious exemptions for contraceptive coverage, which drew considerable public attention and debate. Additionally, a 2017 smuggling scandal resulted in a $3 million fine and the forfeiture of thousands of ancient artifacts illegally imported for the Museum of the Bible, highlighting regulatory and ethical scrutiny.

Supreme Court Religious Exemption Case

The Burwell v. Hobby Lobby case in 2014 centered on religious objections to providing certain contraceptives, leading to a Supreme Court ruling that allowed closely held for-profit corporations to seek exemptions from federal regulations on religious grounds.

Ancient Artifacts Smuggling Scandal

In 2017, the company faced legal repercussions for illegally importing over 5,500 ancient artifacts, resulting in a settlement that included a $3 million fine and the forfeiture of the items.

COVID-19 Pandemic Response

During the 2020 pandemic, the company faced criticism for its initial stance on store closures and employee sick leave policies, though it eventually adapted to public health guidelines.

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The Hobby Lobby company origins trace back to a modest beginning in 1970 when David and Barbara Green started crafting miniature picture frames from their garage with a $600 loan. This entrepreneurial spirit led to the official opening of the first 300-square-foot store in Oklahoma City, Oklahoma, in 1972. The business quickly expanded, with a second store opening in 1975 and the establishment of related companies like Crafts Etc. and H.L. Realty in 1977. The company's growth continued, with its first store outside of Oklahoma opening in 1984. Despite a setback in 1985 due to over-diversification, the company refocused on its core arts and crafts business, leading to significant expansion, reaching 50 locations by 1992. The company's commitment to its values is evident in its practice of placing Christian message ads during holiday seasons starting in 1997. The Hobby Lobby business story is one of consistent growth and adaptation.

Continued Physical Store Expansion

Retail analysts project the company could reach 1,500 U.S. stores by 2026. This growth strategy emphasizes opening new locations in mid-sized metro areas.

E-commerce Growth Trajectory

The company's online presence is a key area for future development. hobbylobby.com generated $557 million in 2024, with projected revenue increases of 5-10% in 2025.

Strategic Real Estate Utilization

Expansion plans often involve repurposing existing large retail spaces. This approach helps to reduce costs associated with new store development.

Commitment to Founding Principles

Despite external discussions, the company remains dedicated to its founding vision of 'Honoring the Lord in all we do'. This commitment guides its operational philosophy and business practices, as detailed in this article about Mission, Vision & Core Values of Hobby Lobby Stores.

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