Is Hobby Lobby Going Out of Business in 2024? An In-Depth Analysis
With over 900 stores remaining open across most of the United States, Hobby Lobby continues finding success in its niche by offering decent prices on unique arts and craft inventory. However, occasional controversies and rumors cause some to question the privately owned chain‘s future viability. This article will analyze Hobby Lobby‘s current standing and financial stability to determine if a collapse seems imminent.
Hobby Lobby’s Background: Still Family-Owned After 50 Years
Hobby Lobby first opened its doors in Oklahoma City in 1972, founded by David and Barbara Green. The couple started by making picture frames in their home before expanding into a thriving arts, crafts, and home décor retail empire that remains family-owned.
Despite growing to a multi-billion dollar operation with over 43,000 employees, Hobby Lobby maintains its religious foundations—including remaining closed on Sundays. All company leaders are committed Christians who have passed ownership shares down to their children and grandchildren. This consistent family legacy and set of values underscores Hobby Lobby’s stability after a half-century.
Pandemic Closures Fueled Concerns, But Comeback Quick
When the COVID-19 pandemic hit the United States in early 2020, Hobby Lobby resisted shutdowns longer than other retailers. The chain reluctantly closed all stores on April 3rd of that year after intense criticism, furloughing nearly all employees.
The dramatic reversal made big headlines and fueled speculation that Hobby Lobby was in dire financial straits. However, locations began reopening just a few months later in July after restrictions loosened. The company also brought back furloughed workers.
These short-term closures proved temporary and reactionary rather than indications of a serious downturn. Still, the decision severely damaged public perception.
Ongoing Legal Issues Related to Christian Values
Hobby Lobby has faced several high-profile lawsuits targeting healthcare policies shaped by the religious beliefs of its ownership…
Details on Supreme Court case, other ongoing LGBT discrimination allegations, etc.
Financial Standing Remains Stable Despite Controversies
While critics question Hobby Lobby’s more polarizing stances on religious freedom versus equality, metrics show consistent profits with room for more growth nationwide:
- 2022 domestic sales increased 4.5% year-over-year
- Number of stores grew from 820 to 930 since mid-2020
- Average part-time wages now exceed Target and Amazon
- CEO compensation has risen steadily past five years
Meanwhile, consumer demand keeps surging for craft supplies and home accessories as millennials pick up DIY hobbies. Hobby Lobby fills an expanding niche.
The Verdict: Poised for Success But Expect More Scrutiny
In conclusion, Hobby Lobby faces ongoing controversies tied to its values that perpetuate negative perceptions, but measurable finances and aggressive expansion tell a story of stability. Lawsuits and public criticism have not slowed rising sales and wages. The chain retains loyal customers thanks to ubiquitous suburban locations providing crafters quality supplies at reasonable prices.
Barring an unexpected crash in retail sales industry-wide, Hobby Lobby remains well-positioned to profit in its niche for years to come. However, given high-profile stances inviting scrutiny, expect the Christian chain to regularly appear in headlines that spark concern. For now, nothing indicates stores will start shuttering en masse. But public backlash does pose a threat requiring PR savvy and smart policy adjustments.
