How Does Hobby Lobby Stores Company Work?

The company's operations are centered around providing a vast selection of items for creative pursuits and home decoration. This includes everything from paints and canvases to seasonal decorations and furniture. The in-store and online merchandising strategies are designed to showcase this extensive product range effectively, ensuring customers can easily find what they need.

The company's value proposition is built on offering a comprehensive selection of creative and decorative products through an omnichannel approach. This means customers can shop both in physical retail stores and via a robust e-commerce platform, providing flexibility and convenience. The extensive product catalog, combined with this accessibility, forms a key part of its customer appeal.

A significant operational strategy involves the acquisition and ownership of real estate for its retail locations. By often repurposing existing large retail spaces, the company achieves substantial savings on operating costs, estimated at 50-70% compared to constructing new facilities. This approach directly contributes to its competitive pricing.

Product sourcing involves attending trade shows and conducting trend analysis within the crafting industry. The purchasing department actively engages with national craft conventions and manufacturing facilities to identify market offerings. The company maintains a complex supply chain with numerous vendors and distributors, with key sourcing countries including India, Vietnam, and Mexico. A strict Vendor Code of Conduct is enforced, prohibiting child or forced labor and mandating compliance with environmental laws.

The company's origins trace back to 1970 with David Green's picture frame business, which led to the opening of the first Hobby Lobby store in Oklahoma City in 1972. This marked the beginning of a retail enterprise focused on arts, crafts, and home decor.

A key strategic move has been its aggressive expansion, resulting in over 1,000 stores across 48 U.S. states by May 2025. This growth is often fueled by acquiring existing retail spaces, particularly in suburban areas.

The company's real estate strategy involves owning properties, often in mid- to high-income suburban locations. This approach, particularly utilizing former big-box retail facilities, provides significant cost advantages, with reported savings of 50-70% compared to new construction.

Hobby Lobby has demonstrated resilience in overcoming operational and market challenges. This includes navigating significant legal hurdles, such as the 2014 Supreme Court case concerning employee birth control coverage, and adapting to market shifts like those experienced during the COVID-19 pandemic in early 2020.

Hobby Lobby is a leading privately-owned retailer in the arts and crafts industry, with a presence in 48 U.S. states. Its market share is particularly strong in the Fabric, Craft & Sewing Supplies Stores segment. The North American arts and crafts market was valued at USD 17.8 billion in 2024, fueled by a robust DIY culture.

Potential economic slowdowns could impact discretionary spending on hobbies. Increased competition from online retailers and evolving consumer preferences also present challenges. While debt-free, the company must navigate shifts in the crafting landscape.

The company plans continued store expansion, focusing on high-value locations. Its online sales, which reached US$557 million in 2024, are projected to grow by 5-10% in 2025. Marketing efforts include weekly ads, seasonal sales, and digital channels.

The global arts and crafts market is expected to reach $65.18 billion by 2029, growing at a 7.8% CAGR. This growth is driven by an expanding gifting culture and a preference for eco-friendly materials.