Hobbycraft

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Hobbycraft
Private
Industry Retail , arts and crafts sector
Founded 1995
Headquarters Christchurch, Dorset, UK
Key people
Catriona Marshall - chief executive
Mike Thomas - IT Director (former IT and supply chain director of Entertainment UK)
Products art and craft and hobbyist materials
Revenue £7M (2014) Decrease
Number of employees
250 - 1000 [1]
Website www.hobbycraft.co.uk

Hobbycraft is an arts and crafts superstore retail chain in the United Kingdom.[2][3] When the company started out there were only small independent arts and crafts suppliers, however a number of other online and High Street retail chains now operate in the same market place as HobbyCraft.

History

It was started by the Haskins group, a nursery and garden supplier in the south of England, and was bought by investment group Bridgepoint in 2010.[4][5]

The first store opened in Dorset in 1995. There are currently 81 stores across the UK, the newest being in Bedford and Aintree, with Yeovil due to open July 2014.[6]

The store holds a national arts and crafts competition for children and adults.[7]

The stores have been blamed for putting independent craft suppliers out of business, and the amount of choice for specific hobbies has been said to be not as good as in specialised stores.[8] HobbyCraft reported a 10% increase in sales in early 2010, and opened two new stores,[9] with the chief executive saying arts and crafts are a low cost hobby and so he believes they will do well despite difficulties in the economy.[10]

In 2012, the company made EBITDA of £15.6m, a 9% rise on the previous year.[11]

In 2010-2011, Hobbycraft quickly brought in a new shipping system under the guidance of Hobbycraft IT Director, Mike Thomas a former supply chain director, IT and Business Development Director for the defunct Entertainment UK and Woolworths Group companies in which he had held active senior director/shareholder roles[12][13]

During the deployment of the new IT system, Hobbycraft management also decided to relocate the distribution centre operations from Blandford Forum to Burton-upon-Trent.[13][14]

In Oct 2013, it was revealed that "Hobbycraft's pre-tax profits fell from £11.5m to £6.3m last year after the company incurred exceptional costs of £2.8m, mostly as a result of the decision to relocate its distribution from Dorset to Staffordshire." [15]

In September 2014, it was revealed that Hobbycraft's profits had halved due chains such as Aldi, Lidl, Poundland and online retailers such as Amazon moving into the craft market. Hobbycraft's CEO Catriona Marshall, was quoted as saying that the companies profits had been depressed by a £3m investment on a rented warehouse in Burton-upon-Trent on which Hobbycraft took out a 15-year lease.[16] Marshall was directly quoted as saying "Our performance in 2013/14 reflects investment in infrastructure and the final stages of the programme to put in place our new supply chain and online trading platform. We are now using this investment to grow store sales and our online presence." [17][18][19]

At the start of December 2014, Bridgepoint brought in retail veteran Archie Norman in the hope of turning around the fortunes of the company.[20] On the 8th December 2014, Catriona Marshall "admitted market conditions remain "difficult" and discounting its arts and craft supplies was becoming increasingly important to keep tills ringing.". Insider Media reported that Hobbycraft Trading Ltd the parent company of Hobbycraft Group Ltd had fallen further into the red posting a pre-tax loss of £21.1m, an increase on the loss of £13.3m in 2013.[14][21]

Controversies

  • In May 2013, Queen's Hospital A&E department in Burton upon trent was closed down for three hours "in accordance with national guidance" after 7 workers reported covered with an unknown white powder. It was later shown to be inert.[23]
  • In early 2014, Hobbycraft made UK wide news headlines when after staff on non-UK nationals on zero hour contracts to speak English or face disciplinary action[24][25]

References

  1. Alexa.com
  2. http://www.hobbycraft.co.uk/pages/about%20us HobbyCraft website
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  4. http://www.independent.co.uk/news/business/news/bridgepoint-pays-pound100m-for-hobbycraft-stores-1958726.html
  5. http://www.bridgepoint.eu/about-us/news-views/hobbycraft-acquired-bridgepoint
  6. http://www.hobbycraft.co.uk/storefinder
  7. http://www.daventrytoday.co.uk/news/Budding-animator-reaches-national-finals.3924472.jp Budding animator reaches national finals
  8. [1] Time up for craft store
  9. http://www.diyweek.net/news/news.asp?id=12001&title=Hobbycraft+expands+store+portfolio+ Hobbycraft expands store portfolio
  10. http://www.toynewsmag.com/news/30934/Hobbycraft-boss-predicts-craft-explosion Hobbycraft boss predicts craft explosion
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External links