View Full Version : Hobby Lobby HQ & Distribution Center
chuck johnson 08-26-2011, 12:37 PM "I’ll just say that my three competitors have it and two of them lost money last year. One of them barely got their head above water and we are very, very profitable. So, I can say that there is no guarantee that it’s going to make you money. (sic) one of the problems with companies is that they think they can run their stores from the home office with computers. I don’t want to run it. I want someone every week checking every item in every department because there’s nothing more important. Sixty percent of our items we only sell one or two a month. So if someone steals one or two of these items, I don’t have it on the counter. How much does that cost me? When someone breaks something, there’s no accounting for it. But quarterly, I come back in and I check these things to get it back in stock. So I am checking every item, every week in every store to make sure that I have got those items for the customer. That is more important to me than for me to try to take over the replenishment system in the stores. So that is the positive side from my standpoint. Instead of saying, look, I don’t need you guys. Instead of using you, I am going to use the computer to replenish your stores. So we do a much, much better job than any of our competitors. They don’t have to count every item, but they can see and we give them a basic idea of what they should have on the shelf of every store based on their volume. " David Green
Can't this be done in addition to the barcode scanner? How long can they keep doing this as they expand? Perhaps being in a niche business with no corporate governance and dominating it allows you to do what you wish as long as it works. Returning items there is a nightmare or worse, standing behind someone returning items.
MadMonk 08-26-2011, 01:25 PM Thanks for posting that interview ljbab728; it was long but interesting. With 490 stores in 40 states, it seems they are doing something right, bar codes or not. You couldn't get that large otherwise.
kevinpate 08-26-2011, 01:59 PM ... Returning items there is a nightmare or worse, standing behind someone returning items.
Have rarely ever needed to return something to HL. When it's been necessary, it has never been an issue. Just spoke to my lovely and she related the same from her perspective. Sorry you have had issues.
Very interesting interview with David Green -- thanks so much for sharing that.
He said they had no ceiling for how big they would like to be; would like to be in every state (in 36 now) and that they would still run only one huge warehouse/distribution center and that it would always be OKC. They are 5 million square feet now and growing.
I also didn't realize they manufactured lots of things at the Council & SW 44th site: picture frames, paper products, candles, etc.
Also interesting that Mr. Green said he has never (!) been on a computer and doesn't own a cell phone.
They could very well end up being the largest private employer in Oklahoma before long.
Skyline 08-26-2011, 03:37 PM He's never been on a computer and I have never been in one of his stores.
I wonder which gives first?
Other interesting points:
The company has absolutely no debt. Own all the warehouses and some of the stores.
Very profitable as compared to their main competitors (JoAnn, Michael's) who make little to no profit of late.
No bar code system because the stores are required to visually inventory all items every week. They don't count, but learn to quickly look and know when to reorder. Says they need to employ one extra checker per store but that they are way, way more efficient than their competitors (who all use bar coding). No plans to add bar coding.
Stores are only open 66 hours per week, never past 8PM and never on a Sunday.
High emphasis on clean, orderly stores with wide aisle (personally, I find their stores infinitely better about this than JoAnn or Michaels).
kevinpate 08-26-2011, 04:21 PM ...
I also didn't realize they manufactured lots of things at the Council & SW 44th site: picture frames, paper products, candles, etc.
I knew they had a subsidiary, World Wood Works, something along those lines. I don't recall ever being aware they were into their own paper and candle products. I guess they are growing in many ways.
He mentioned about a dozen subsidiaries that manufacture all types of things, including most the fixtures for their stores. Very, very interesting guy and approach to business.
He also said that he views Hobby Lobby as "the tree" and that it belongs to God. They can harvest the fruit for their various ministries but can never touch the tree and that his plan is to have it keep growing and growing and bearing more and more fruit.
chuck johnson 08-26-2011, 06:13 PM Have rarely ever needed to return something to HL. When it's been necessary, it has never been an issue. Just spoke to my lovely and she related the same from her perspective. Sorry you have had issues.
Don't get me wrong, I love that place. I grew up building model airplanes and rockets and Hobby Lobby was the place to go other than the Hobby Shop at Crossroads. I was very fortunate to become a professional model maker and having access to a hobby shop definitely had an impact.
khook 08-26-2011, 11:36 PM Yep they are known to try a company out to see if the product will work and then if it does they start producing it themselfs.
ljbab728 08-27-2011, 12:28 AM I knew they had a subsidiary, World Wood Works, something along those lines. I don't recall ever being aware they were into their own paper and candle products. I guess they are growing in many ways.
It was Worldwood Industries but it's now called Hobby Lobby Manufacturing.
ljbab728 08-27-2011, 12:30 AM Also interesting that Mr. Green said he has never (!) been on a computer and doesn't own a cell phone.
His wife, Barbara, uses both so I'm sure she helps him keep in touch. LOL
ljbab728 01-12-2012, 12:55 AM No surprise, but their Museum of the Bible will not be coming to OKC.
http://newsok.com/bible-museums-likely-home-is-nations-capital/article/3639502
The Passages exhibit which recently completed a long run at the Oklahoma City Museum of Art is now in Atlanta. It will be going next to Charlotte and Vatican City in Rome.
Interesting information on their continued growth:
Hobby Lobby continues to grow, ending 2011 with 492 stores nationwide. The company is on track to open 40 to 45 more this year, including their 500th store in Las Vegas, Green said. That's halfway to their goal of 1,000 stores — what Green believes is the optimal number to saturate the U.S. market.
Read more: http://newsok.com/bible-museums-likely-home-is-nations-capital/article/3639502#ixzz1jG8Sq6Gg
Doodle65 03-08-2012, 08:19 AM I have actually heard that there will be a mini-highrise going up in the future. Nothing compaired to Devon's but that massive building would not be Mr. Green. I am thinking I heard they purchased the property across the street of the offices to build this one. I am pretty sure it is a little bit in the future because they are finishing up the one they are working on now.... I would imagine that would be where the office operations would be going, but then again just something I heard.
metro 03-08-2012, 09:08 AM "mini-high rise"? Do you mean a low-rise or a mid-rise?
Yet another big building permit today for the Hobby Lobby complex:
$14.9 million for 332,600 square feet of warehouse/office space.
MadMonk 03-14-2012, 02:13 PM They're going to have to get their own zip code.
Beastboii 03-14-2012, 03:36 PM My dad works here, he said its crazy huge
They picked a great spot as there is still tons of room to grow in that area.
And based on their aggressive growth plans, they are going to need it.
Snowman 03-14-2012, 11:55 PM They picked a great spot as there is still tons of room to grow in that area.
And based on their aggressive growth plans, they are going to need it.
The downside of that spot and the Outlet mall location is when the Cottonseed Mill moves into the old tire factory, unless they have a newer process to operate without generating the same fumes as today or can capture particulates of the fumes, it is going to drastically reduce the local air quality there at least one out of every three days.
Hobby Lobby just bought another 55 acres for $3.5 million (shown in yellow).
Their other properties are shown in blue.
http://www.okctalk.com/images/pete/hobbylobby33012.jpg
Here's a recap of everything they own:
Building #1: 735,000
Buidling #2: 295,000
Building #3: 647,000
Building #4: 720,000
Building #5: 538,000
Building #5A: 700,000 (approx.)
Under Construction: 326,000
That's 4 million square feet of space!
http://www.okctalk.com/images/pete/hobbylobby3.jpg
http://www.okctalk.com/images/pete/hobbylobby2.jpg
Is Hobby Lobby competing against Chesapeake to create the largest city within a city? LOL
Snowman 03-30-2012, 09:19 PM Is Hobby Lobby competing against Chesapeake to create the largest city within a city? LOL
Chesapeake could be a city since it has housing (with a larger population than many towns in Oklahoma), office, retail, restaurants and parks. Hobby Lobby is more of it's own district since it only has offices and warehouses.
ANOTHER $24.5 million building permit for an addition half a million square feet at there HQ and distribution center.
Holy cats, they are growing like crazy. I need to update my maps and charts because I've lost track.
They are just now starting to push into California and that is going to be a massive market for them. They are way better than Michael's and the other stores here IMO.
Just heard from someone who works for Hobby Lobby and learned:
California store openings for Hobby Lobby have been phenomenal, roughly 4-5 times the volume of a typical opening elsewhere in the country. They are planning for a total of around 100 stores in CA (there are currently less than 10).
They currently have over 500 stores nationwide and they plan on at least 40 more openings by the end of 2013.
They are also planning on erecting a new office complex to house Accounting and IT across the street from building 1 on the land they recently acquired. That might happen by late 2013 or so.
ljbab728 08-16-2012, 11:18 PM I don't work for Hobby Lobby but my company has business dealings with them on a daily basis. I can definitely attest that they are expanding like crazy.
Snowman 08-17-2012, 12:44 AM That looks like it is beginning to rival the square footage of Tinker
Tinker actually has more than 15 million square feet of space and this latest development pushes HL up to about 4.5 million.
1972ford 08-17-2012, 07:11 PM Tinker is adding space as fast or faster than hobby lobby. Don't be surprised to see building permits for a new truck service building. I would not be surprised to see them add onto the truck and container lot soon either.
Regarding the oil mill too bad we can't pump that stuff into the landfill to occupy the space of the escaping methane. Would do wonders for the city's air quality even if the particulates still manage to escape.
I feel sorry for the children that are going to be attending that new school on 15th and Council between the dump and the oil mill they may need a respiratory clinic incorporated into the nurse's office
catch22 09-02-2012, 03:11 PM Pete, saw this in the DOK. Do your numbers/records include this transaction from May?
Hobby Lobby bought three big multitenant warehouses totaling 465,000 square feet just north of its headquarters at SW 44 and Council Road. Hobby Lobby in converting them to its own use, removing them from the leasable property rolls. [...]
http://newsok.com/oklahoma-city-bulk-warehouse-space-getting-scarce/article/3705869
catch22 09-29-2012, 12:04 PM Looks like Hobby Lobby has bought even more property this week.
HL Acquisitions LLC from Swift Transportation Co. Inc., property near the southeast corner of S Council Road and SW 44, $2,300,000.
Read more: Land sales for Sept. 29 | NewsOK.com (http://newsok.com/land-sales-for-sept.-29/article/3714065#ixzz27sZVQxCt)
catch22 02-11-2013, 08:56 PM $16.8 million Building Permit submitted today for 7700 SW 44th street for a 3 story office building, totaling 143,878 sqft.
This is on the south side of 44th, and is likely the piece of land they bought in Sept 2012 I noted in the post above.
BoulderSooner 04-25-2013, 10:31 AM hobby lobby buys more land south of their buildings ..
• Hobby Lobby Stores Inc. paid $1 million to Oklahoma City University for 27 acres on S Council Road just north of State Highway 152.
• Hobby Lobby Stores Inc. paid $625,000 to First American Title & Trust Co. for 10 acres adjacent and north of the 27 acres at Council Road and SH 152.
kbsooner 04-26-2013, 10:05 AM Does anyone know what architecture firm they are using for their local distribution work?
Larry OKC 05-10-2013, 11:02 AM Hobby Lobby to add 6 buildings to warehouse center | News OK (http://newsok.com/hobby-lobby-to-add-6-buildings-to-warehouse-center/article/3808344)
...five of the buildings will measure 80,000 square feet each. The largest building will be 130,000 square feet.
...
The building additions are the next step in Hobby Lobby's expansion. Last year, the company spent $34.6 million to buy 300 acres of land.
I need to do an updated aerial, square footage total, etc.
They are really blowing and going with even bigger plans for the future.
They have become an economic dynamo for OKC.
BoulderSooner 05-10-2013, 02:39 PM I need to do an updated aerial, square footage total, etc.
They are really blowing and going with even bigger plans for the future.
They have become an economic dynamo for OKC.
that would be great pete
Bellaboo 05-10-2013, 03:20 PM I need to do an updated aerial, square footage total, etc.
They are really blowing and going with even bigger plans for the future.
They have become an economic dynamo for OKC.
That article said almost 4,000 employees at the HQ location...... wow
I bet they have now passed Chesapeake as the City's largest private employer.
They are certainly going in opposite directions.
Zuplar 09-15-2013, 04:01 PM Does anyone know what they are building at Council and 152 on the north side? There is a huge area that is now leveled and a bunch of dirtwork. This is south of the Hobby Lobby campus. I'm guessing it's just some warehouse as it seems like that's all that is on Council nowadays.
ljbab728 09-15-2013, 10:04 PM Does anyone know what they are building at Council and 152 on the north side? There is a huge area that is now leveled and a bunch of dirtwork. This is south of the Hobby Lobby campus. I'm guessing it's just some warehouse as it seems like that's all that is on Council nowadays.
Isn't that land that was purchased by Hobby Lobby for expansion?
catch22 09-16-2013, 08:25 AM Yes. They will build an HQ office building and probably more warehouse space.
Zuplar 09-16-2013, 08:56 AM I guess it makes sense, I just figured with how many buildings they already had were enough.
Zuplar 09-30-2013, 08:41 PM Driving by this again I'm not sure if this is Hobby Lobby. There is 2 areas of construction, 1 just north of 152 and one over off of SW 44th that looks like a multi-story building. The pad just North of 152 is massive, almost like what AWG looked like when it went in. I'm wondering if this is a separate project that just happens to be going on at the same time.
mikeareese 10-01-2013, 12:53 PM Hobby Lobby is building office buildings near 44th and Council across from the campus. They are also building 2 or 3 more warehouses behind the hiring center stretching towards 29th. If you havent been inside and watched the robots pull full pallet orders. It is something to see.
Zuplar 10-02-2013, 08:38 AM Hobby Lobby is building office buildings near 44th and Council across from the campus. They are also building 2 or 3 more warehouses behind the hiring center stretching towards 29th. If you havent been inside and watched the robots pull full pallet orders. It is something to see.
Here is the area I'm talking about where the work is being done. Like I said it's a huge area.
4551
crimsoncrazy 10-02-2013, 12:12 PM It's all Hobby Lobby.
Zuplar 10-03-2013, 09:29 AM That's quite the addition if they are adding all that and the buildings on the North side.
catch22 10-18-2013, 11:28 AM The filed a $11,000,000 permit for 5300 S. Council Rd for 275,000 square feet of Warehouse on 1-Oct-13. So, yes they will be building from SW 44th all the way down to Airport Road.
MASSIVE.
http://gyazo.com/d1f13eacfcc36e4d933f756d4c0804f3.png
catch22 10-18-2013, 11:29 AM And their multi-story office building is well under construction along 44th. On that map it would be on the south side of 44th between the two blue "shopping bags".
Zuplar 10-18-2013, 12:52 PM Definitely going to add to their campus. That multi-story building has made some progress. I haven't been up that away in a week or 2 though.
Zuplar 11-06-2013, 04:22 PM Just saw this in the Mustang Times. Thought I'd share it as I have a subscription.
4972
catch22 11-06-2013, 04:35 PM Jeez that's an ugly building...
ljbab728 11-06-2013, 11:04 PM Jeez that's an ugly building...
Like it or not, it fits in very well with the architecture of the rest of their campus.
Zuplar 11-07-2013, 08:26 AM I personally think it's fine, still will be one of the nicer buildings in the area. Most everything over there now is warehouses except for Hobby Lobby's campus.
Here are some more images of their new HQ:
http://www.okctalk.com/images/pete/hlhq1.jpg
http://www.okctalk.com/images/pete/hlhq2.jpg
http://www.okctalk.com/images/pete/hlhq3.jpg
http://www.okctalk.com/images/pete/hlhq4.jpg
sgt. pepper 11-07-2013, 11:38 AM Jeez that's an ugly building...
That is NOT a ugly building.......Jeez
Zuplar 11-07-2013, 11:41 AM Thanks Pete, now that you have merged my thread with this one it makes me look like an idiot for not knowing it's hobby lobby, lol.
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