Hobby Lobby
From Wikipedia, the free encyclopedia
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 2008. 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 $300 million - $400 million annually, or more.
Hobby Lobby headquarters are located in a 3.4 million square foot manufacturing, distribution and office complex.
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]
Philanthropy
Hobby Lobby's founder donates extensively to his church and many other non-profit, Christian-based organizations, 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.
Green frequently buys vacant buildings (old Wal-Marts, businesses, etc.) and donates them to church-based organizations. He donates millions of dollars to Christian-based causes, such as kid's camps, inner city missions, etc. Green prefers to keep a low key in regards to his donations. It is rarely known when he donates and to whom it was to.
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.
