Hobbycraft set to open new stores and create 40 jobs after strong year

Arts and crafts retail chain Hobbycraft is to create more stores and jobs after posting a lift in profits for the past year.

The company said its adjusted pre-tax profit for the 2022 financial year was £15 million, which marks a growth from £13.8 million the previous year.

Total revenue also rose 14.8% from £176.9 million in 2021 to £203.1 million.

Moving into the next financial year, the retailer is set to build three new sites, with stores in Bromborough, Merseyside; Biggleswade, Bedfordshire; and Southend, Essex; creating 40 new retail jobs.

Chief executive Dominic Jordan said the company is “incredibly well placed” moving forward, but added the 2023 financial year will be “challenging”.

He said: “As we emerge from the pandemic the business is incredibly well placed to build on the excellent performance in full-year 2022, with multiple new initiatives including the new website, workshop channel, further new stores and a subscription model which launches in the coming year.

“However, we are conscious that the year ahead will be very challenging, particularly given the significant inflationary pressures on our customers and we are starting to see this impact on market demand in the early part of full-year 2023.”

Mr Jordan also said Hobbycraft faced problems because of a significant increase in freight costs and the fact that the company had to close for seven weeks during the Covid pandemic lockdown in 2021 as it was not classed as an essential retailer.

The company turned its efforts to the digital space, and saw e-commerce sales grow 58.2% from the point stores reopened in April 2021 compared to prepandemic levels in 2020.

Hobbycraft is to open new stores in the UK.