Hobby Lobby

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Hobby Lobby is a privately held retail chain of arts and crafts stores based in Oklahoma City, Oklahoma, and is formally called Hobby Lobby Creative Centers.

Founded by David Green on August 3, 1972, with a $600 loan from the bank, the chain has grown from one 700 square foot store to over 386 stores in 29 states as of August 2007, with projections to have over 450 stores by the end of 2009. The company has projected sales of close to $2 billion in 2007. As a private company, Hobby Lobby's profits are not disclosed. However, in interviews with Founder & CEO David Green, he states the stores are "very profitable." Many business valuation experts project the profits to be anywhere between $250 million - $300 million annually.

Hobby Lobby headquarters are located in a 3.4 million square foot manufacturing, distribution and office complex.

Contents

[edit] Business practices

As of this time, stores do not use a barcode system and therefore rely on the hand pricing and ordering of items. On its web site, Hobby Lobby states that the high cost of the scanner system would hurt their ability to remain competitive in pricing.[1]

One way that Hobby Lobby maintains continuity among stores is by delivering the music via satellite from headquarters. This music blends light jazz, classical, bluegrass, and contemporary music styles (a large percentage of the chosen tunes are instrumental adaptations of traditional Christian hymns) into one single playlist which loops continuously.[2]

Hobby Lobby locations have general operating hours from 9 a.m. to 8 p.m. Monday to Saturday. All locations are closed on Sunday, out of respect for the founder's Christian beliefs.[3]

Hobby Lobby's founder donates extensively to his church. David Green also donates extensively to many other Christian foundations and causes, such as the Oklahoma City Rescue Mission, Light for the Lost, as well as numerous churches throughout the country. Mr. Green and his wife Barbara faithfully attend Capitol Hill Assembly of God Church in Oklahoma City, pastored by Glen Cranfield, the former CEO of the Oklahoma City Rescue Mission.

In latter 2007, the Green family announced a $70 million donation to the battered Oral Roberts University in Tulsa, OK, after it was announced that the ORU founder's son and University President, Richard Roberts, would resign following allegations of financial improprieties and declining donations. “ORU must restore its broken trust, its battered reputation and its beaten spirit. Now begins a time of healing,” said Green, whose family has no immediate ties to ORU but has supported religious universities in the past. Green made it clear the donation would be for the university, not the Oral Roberts Evangelistic Association.

However, the pledge from the Green family comes with a few strings attached.

The family made an initial $8 million gift initially, but Green said the remaining $62 million will be donated only if the university makes progress within the next three months addressing problems with its finances, leadership, pending lawsuits and governance.

Green said that includes changes to ORU’s board of regents, a panel that is made up largely of successful televangelists who are close to the Roberts family.

[edit] Affiliated companies

  • Mardel - a Christian bookstore chain
  • Hemispheres - a home furnishings company
  • Crafts Etc! - a craft wholesaler and online retailer
  • H.L. Construction - which handles the construction and renovation of Hobby Lobby stores
  • Ethnographic Media - formerly Bearing Fruit Communications - an advertising agency
  • Hong Kong Connection - Chinese sourcing and buying office

[edit] Hobby Lobby International

Hobby Lobby Creative Centers is not related to Hobby Lobby International, a chain of smaller stores specializing in radio controlled model aircraft.[4]

[edit] References

  1. ^ Hobby Lobby Frequently Asked Questions. Hobby Lobby. Retrieved on 2007-01-04.
  2. ^ Frequently Asked Questions. Hobby Lobby. Retrieved on 2007-01-04.
  3. ^ Hobby Lobby Frequently Asked Questions. Hobby Lobby. Retrieved on 2007-01-04.
  4. ^ Hobby Lobby International

[edit] External links

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Major Corporations (within the Oklahoma City metropolitan area)

Oklahoma City-based Fortune 500 Corporations (by size):
Devon Energy • Chesapeake Energy

Oklahoma City-based Fortune 1000 Corporations (by size):
Companies listed above, plus: OGE Energy

Major Oklahoma City-based private corporations (Fortune's Largest Private Companies):
Love's Travel Shops (42) • Hobby Lobby (267) • OPUBCO