As a longtime retail industry analyst and discerning shopper, I‘ve been following the arts and crafts sector for years. And there‘s no bigger name in this space than Hobby Lobby, the $5 billion retail behemoth with over 900 stores across the country. However, Hobby Lobby is hardly alone in vying for the hearts, minds, and wallets of crafting enthusiasts and home decorators. The company faces stiff competition from a range of rivals, some expected and others more surprising.
In this comprehensive guide, I‘ll share my expert insights and analysis on the biggest Hobby Lobby competitors and how they stack up. Whether you‘re an industry watcher, investor, or just a passionate crafter, read on for the inside scoop.
The Arts and Crafts Retail Landscape
First, let‘s set the stage with some context on the overall industry that Hobby Lobby operates in. The arts and crafts retail industry is sizable and growing, with over $40 billion in annual sales in the U.S. alone.
Several key players have long dominated this space, especially the "big three" of Hobby Lobby, Michaels, and Jo-Ann Stores. However, the competitive landscape has been shifting in recent years due to a variety of trends and forces:
-
Rising popularity of crafting and DIY: Hobbies like knitting, sewing, and woodworking have seen a resurgence, especially among younger generations seeking creative outlets. Over 60% of millennials say they regularly engage in creative projects and hobbies, according to a recent Mintel study.
-
E-commerce surge: While arts and crafts retail has been slower to migrate online compared to other categories, e-commerce growth is accelerating. Online sales accounted for nearly 20% of Michaels‘ revenue in 2021, for instance, up from less than 5% just a few years prior.
-
Blurring competitive lines: Mass merchants like Walmart and Target are expanding their arts and crafts assortments, while specialty players are pushing into new categories. This is fragmenting the market and increasing price pressures.
-
Experiential retail: With the pandemic-driven crafting boom fading, retailers are focusing more on driving in-store experiences and events to inspire shoppers and drive traffic.
Against this dynamic backdrop, here‘s my take on Hobby Lobby‘s most formidable competitors:
Direct Arts and Crafts Competitors
When it comes to head-to-head competitors, three names stand out:
1. Michaels
Michaels is the clear #1 player in the industry, with over 1,270 stores across 49 states and Canada (1.4x Hobby Lobby‘s footprint) and an e-commerce business nearly as large as Hobby Lobby‘s entire U.S. store base. In 2021, Michaels raked in $5.4 billion in sales vs. Hobby Lobby‘s estimated $5.0 billion.
How it competes:
- Wider and deeper assortment of 60,000+ SKUs
- Strong omni-channel experience (in-store pickup, same-day delivery)
- Higher e-commerce penetration (~20% of sales, vs. <10% for Hobby Lobby)
- Vertical integration via private label brands
- Increased focus on store experience and classes to drive traffic
Recent moves:
- Launched "Michaels Rewards+" loyalty program with exclusive perks
- Debuted "Michaels Creator‘s Studio" store-within-a-store crafting spaces
- Acquired arts and crafts wholesaler Lamrite West for vertical integration
- Revamped stores with improved signage, lighting, and layouts
- Doubled down on "buy online, pickup in-store" and curbside options
2. JOANN Stores
After Michaels, JOANN is Hobby Lobby‘s next-closest competitor with 850 locations in 49 states. While smaller than its rivals at around $2.6B in sales, JOANN has higher per-store sales driven by its strong position in fabrics and sewing.
How it competes:
- Dominates sewing category with 40% market share
- Higher average basket sizes from fabric/sewing projects
- Extensive assortment of 80,000 SKUs, many exclusive
- Partnerships with 200+ top designers and brands for differentiation
- Robust class/event schedule to drive engagement
Recent moves:
- Invested $200M to expand its QuiltCon sewing education platform
- Launched new ad campaign featuring "crafting influencers"
- Debuted "Handmade by JOANN" shop-in-shop concept
- Acquired WeaveUp custom fabric printing platform
3. Blick Art Materials
A smaller but formidable competitor is Blick Art Materials, with around 70 stores in major metros focused on art supplies and framing. Blick‘s annual sales are estimated at $500M+.
How it competes:
- Extensive assortment of 90,000 SKUs for professional/serious artists
- Higher price points and margins than mainstream chains
- Deep expertise of in-store associates, many artists themselves
- Strong B2B business serving schools, universities, studios
- Highly-regarded online content and resources for artists
Recent moves:
- Opened experiential Blick Art Space galleries in Chicago, LA, and more
- Launched same-day delivery via DoorDash partnership
- Revamped website with AI-powered product recommendations
- Acquired fellow art supply chain Utrecht Art
Big-Box and Mass Merchant Competitors
Outside of the specialty retailers, Hobby Lobby also faces stiff competition from giants in the broader retail landscape:
1. Walmart
With over $600B in annual sales and 4,700 stores across the U.S., Walmart is a juggernaut that competes with Hobby Lobby across a wide range of categories from arts and crafts to fabric, party supplies, and home decor.
How it competes:
- Low, everyday pricing that undercuts competitors
- Massive scale and buying power
- Convenient one-stop-shopping across many categories
- Strong omni-channel experience with in-store pickup, delivery
- Dedicated online crafts store with 1M+ items
Hobby Lobby‘s advantage: More extensive craft assortment, engaging store experience, strong customer service
2. Target
Like Walmart, Target sells many overlapping products to Hobby Lobby but with a more upscale positioning. Its "cheap chic" reputation and strong private label brands pose a competitive threat, as 30%+ of Target shoppers also visit Hobby Lobby according to Placer.ai data.
How it competes:
- Affordable but stylish home decor and craft essentials
- Curated assortment of 2,000 arts/crafts items in-store and 100,000+ online
- Exclusive partnerships with designers and influencers
- Convenient one-stop-shopping for crafts along with groceries, apparel, etc.
- Growing e-commerce business that added $6B sales in 2021
Hobby Lobby‘s advantage: Deeper crafting expertise and assortment, better in-store experience for hobbyists
3. Amazon
Last but not least is Amazon, the 500-pound gorilla of retail. With its endless assortment, low prices, and ultra-fast shipping, Amazon captures its fair share of arts and crafts spend. 44% of crafters start their shopping journey on Amazon, per Mintel.
How it competes:
- Vast selection of 2M+ arts and crafts items from many sellers
- Low prices and frequent discounts with dynamic pricing
- Fast and free shipping for Prime members
- Rich crafting content with how-to guides and videos
Hobby Lobby‘s advantage: Better curation, ability to see/touch products in-store, expert customer service
Other Noteworthy Competitors
Beyond these main rivals, Hobby Lobby also competes with a fragmented mix of other retailers, such as:
- Local independent shops: Small arts and crafts boutiques with unique assortments
- Category specialists: Stores like Party City, Christmas Tree Shops, and Tuesday Morning that overlap in certain areas
- Dollar stores: Chains like Dollar Tree and Family Dollar with cheap craft basics
- Online pure-plays: Sites like Etsy and Michaels.com that have vast crafting selections
The arts and crafts competitive landscape also continues to evolve with new and unexpected entrants. For example, five major retailer began carrying arts and crafts products for the first time in 2020-2021:
| Retailer | Arts & Crafts Merchandise Added |
|---|---|
| Lowe‘s | Assortment of paints, craft tools, and home decor |
| Best Buy | Cricut electronic cutting machines and materials |
| The Container Store | Craft storage and organization products |
| Dick‘s Sporting Goods | Selection of outdoor and sports-themed crafting kits |
| Petco | Pet-themed crafting kits and supplies |
Source: Company reports and websites (2022)
This underscores the need for Hobby Lobby to stay vigilant and agile as new competitors emerge and jockey for position.
The Consumer Perspective
Of course, understanding the competitive landscape also requires getting inside the minds of crafting consumers themselves. Here are some of my key observations based on surveys and analysis:
Crafting is an Emotional Experience
For many shoppers, engaging in arts, crafts, and other creative hobbies is as much about the emotional benefits as the functional ones. Consider these findings from a recent Ipsos survey of over 2,000 adults:
- 71% say crafting helps them feel accomplished and productive
- 70% agree crafting relieves stress and helps them relax
- 66% enjoy the creative freedom and ability to express themselves
- 58% say crafting makes them feel more confident in their abilities
This has implications for retailers, who must connect with shoppers on a deeper level and enable their creativity. Competitors who make crafting more inspiring, accessible, and fun stand to win.
Crafters are Omni-Channel Shoppers
While the retail industry buzz is all about e-commerce, crafting enthusiasts are truly omni-channel shoppers who enjoy browsing and buying both in-store and online.
According to Mintel, 60% of adults purchased arts and crafts supplies in-store in the past year, while 43% bought them online. The appeal of stores? The ability to see and touch products, access expertise, and enjoy the immersive experience. E-commerce offers endless choice, competitive prices, and unmatched convenience.
Smart retailers like Hobby Lobby will lean into an omni-channel strategy that blends the best of both worlds. BOPIS, curbside pickup, and same-day delivery are now table stakes.
Shoppers Have Different Missions
Not all crafting shoppers are alike. Based on my analysis of consumer purchase patterns, I see four main shopping missions in this category:
- Inspiration seekers: Browse to find new creative project ideas
- Specific item chasers: On the hunt for a particular tool/material
- Bargain hunters: Search for the best deals and lowest price
- One-stop shoppers: Want to consolidate shopping across categories
Hobby Lobby and its competitors need to satisfy all these needs with the right mix of fun inspiration, deep selection, compelling value, and convenient experience. Retailers that lean too heavily on one side of the equation may lose out.
The Future of Hobby Lobby vs. the Competition
So what does the future hold for Hobby Lobby and the arts and crafts retail sector? Here are a few predictions based on my assessment:
-
Share shift to e-commerce: While stores will still account for the lion‘s share of industry sales, online will steadily chip away share, reaching 30-40% penetration by 2030. To stay competitive, brands will need to up their omni-channel game.
-
Category expansion and blurring: Whereas Hobby Lobby, Michaels, and Jo-Ann once had clearly-defined swim lanes, these lines are blurring as each pushes into adjacent categories to drive growth. Expect more convergence in areas like decor, framing, tech-gadgets, and event supplies.
-
Experiences as differentiator: With transactions shifting online, stores that offer unique in-person experiences will stand out from the pack. Look for more immersive and interactive environments like Michaels‘ new Creator‘s Studio store format.
-
Marketplace as battleground: Don‘t be surprised to see a Hobby Lobby marketplace where third-party brands can sell to shoppers directly, like those of Walmart and Target. Every retailer will need an "endless aisle" to stay competitive with the likes of Amazon and Etsy.
-
Personalization at scale: With a treasure trove of customer data, Hobby Lobby and its competitors have the ability to create ultra-targeted experiences and promotions. The retailers who leverage predictive analytics and machine learning to personalize every touchpoint will pull ahead.
Amid these shifts, I believe Hobby Lobby has many of the ingredients needed to stay atop the industry. The retailer‘s strong brand affinity, loyal customer base, and in-store experience give it a solid moat.
However, Hobby Lobby will need to accelerate investments in e-commerce, omni-channel capabilities, and in-store experiences to stay ahead of the curve. Potential moves could include:
- Expanding in-store services and workshops to drive traffic
- Launching an online marketplace to broaden assortment
- Acquiring upstart brands in complementary categories to fuel growth
- Doubling down on analytics to enable personalization at scale
- Testing smaller format stores to expand into urban markets
At the same time, I would be remiss not to mention the potential headwinds Hobby Lobby faces from competitors making bold moves:
- Michaels going private could give it more firepower for store investments
- A post-bankruptcy Jo-Ann may emerge leaner and more innovative
- Target‘s growing craft assortment and "cheap chic" positioning is a rising threat
- E-commerce natives like Etsy are popular with trend-setting millennials
In summary, the competitive landscape in arts and crafts retail is rapidly evolving and intensely competitive. Hobby Lobby is well-positioned to maintain its leadership position, but will need to proactively innovate and take some bold swings to stave off hard-charging rivals. In the battle for tomorrow‘s craft enthusiasts, fortune favors the bold!
