Hobbycraft full-year profits jump driven by online sales rise

Total revenue for the period was up 8.9% to £193.6m.

In-store like-for-like sales rose 4.7% year on year while ecommerce sales grew by 19%, driven by investment in online experience and increased click-and-collect services.

The crafting retailer, which opened five new stores over the year bringing its total estate to 99, has been focusing on customer service, which resulted in an improved NPS score of 86%.

In the 12 weeks since lockdown began, when all stores were forced to close, Hobbycraft switched its attentions to online, offering daily ‘Kids’ Craft Club’ classes on its social media channels.

The retailer plans to continue offering its demos and workshops via Zoom in order to reach a wider audience more easily.

During the period, Hobbycraft saw unprecedented demand for its products, with like-for-likes up 200% and its digital classes reaching more than 15 million customers, putting it in a strong position for the year ahead.

Hobbycraft chief executive Dominic Jordan said: “We are pleased with our performance and how our offer improved again over the past year. We continue to execute our strategy with improvements in product ranges supporting multichannel growth.

“Our broad range of products continues to evolve with more specialist materials and newness, ensuring that we satisfy the needs of craft enthusiasts and stay ahead of the competition. New ranges delivered growth across a number of areas, including art, which saw growth of 20%, kids’ painting at 17% and digital cutting with growth of over 100%.

“Our resolute focus on the strategy will see us bring further product innovation and inspiration, a new approach to online demonstrations and workshops, new stores and further investment in our ecommerce platform to support future growth.

“As ever, these plans are underpinned by a focus on great customer service and colleague engagement. We seek to provide inspiration to customers in the local communities we serve and allow our colleagues to demonstrate their incredible knowledge and passion for crafting.”